Tesla, led by Elon Musk, has been actively involved in lobbying the UK government. In a letter to Lilian Greenwood, the Labour roads minister, Tesla pushed for strengthened zero-emission vehicle (ZEV) mandates for cars and the introduction of equivalent rules for heavy goods vehicles (HGVs). This move stands in contrast to several rival car manufacturers that have lobbied for rule relaxation.

Tesla's Impact on UK's Carbon Emission Policies

Impact on Car Emissions

Under the ZEV mandate, manufacturers must sell more electric cars each year. Tesla believes continued progress and further strengthening of this mandate is needed. A vice-president wrote in July that they applaud the Labour party's stance on decarbonisation. However, some British manufacturers argue there isn't enough demand for electric cars. The UK government's recent indication to loosen regulations for car ZEV mandates has sparked debate. Tesla argues that quicker sales of new electric cars will boost the used electric car market. 2: Tesla's push for stricter ZEV rules shows its commitment to clean transport. Musk's belief that carbon emissions should be taxed due to their unpriced externality drives this effort. In previous submissions to the government, Tesla has advocated for higher taxes on petrol and diesel cars. In the latest letter, it suggested subsidies should be revenue-neutral, with higher taxes on fossil fuel cars to subsidise electric car sales.

Impact on Lorry Emissions

For lorries, a ZEV mandate could stimulate the market for electric heavy goods vehicles. Tesla hopes to sell its first model, the Tesla Semi. In 2017, Musk promised production in 2019 but was overly optimistic. Now, the company says production will start in 2026, and prototypes have undergone on-road testing in California by DHL. Tesla wrote that "urgently action is needed" on tackling lorry emissions and the UK is falling behind the EU in emissions reduction regulations. A ZEV lorry mandate could benefit Tesla by opening a new market for credits. 2: The EU has strict emissions reduction regulations for lorries, with manufacturers needing to reduce average emissions by 45% in 2030 and 90% by 2040. A UK ZEV lorry mandate would align with these goals and potentially give Tesla an advantage. By leading in this area, Tesla could establish itself as a key player in the autonomous driving technology space, which it hopes will drive future revenue growth.

Credit Sales and Other Aspects

Despite Musk's political affiliations and the global heating-denying far right, Tesla continues to earn significant amounts from selling credits to rivals. In the first nine months of 2024, it made $2.1bn (£1.65bn) from credits. Trump's proposed slashing of subsidies for electric cars in the US could harm Tesla sales, but it may benefit indirectly if rivals don't get help. Chinese carmakers, Tesla's main global rivals, are blocked from selling to the US by 100% tariffs. Musk also aims to use his access to Trump to push for looser regulation of the autonomous car industry, with Tesla seeing it as a key part of future revenue growth. 2: Tesla's lobbying efforts extend beyond just emissions rules. It shows its determination to shape the future of the automotive industry and play a leading role in clean transportation. Whether through stricter regulations or influencing other policies, Tesla is actively working to advance its goals and position in the market.