Tesla is lobbying the British government to adopt regulations that would have negative consequences for its fossil fuel reliant automotive competitors. Elon Musk’s electric vehicle (EV) brand wants the U.K. to tighten carbon emissions rules and increase taxes on gas-powered vehicles, according to recently reported documents.
The U.K. already has a mandate in place compelling car manufacturers to sell more electric vehicles every year. However, following complaints from automakers like Ford, Land Rover and Stellantis, the government indicated plans to loosen these regulations.
Now, Tesla is advocating for more stringent rules to be enforced, including higher taxes on gas-powered cars, the revenue from which the EV maker has suggested should be used to subsidize EV sales. The company told British lawmakers that “the U.K. is now falling behind” other European nations in terms of transportation emissions legislation, and that “urgently action is needed” to reduce air pollution from this sector.
Aside from the money it would receive from any potential EV subsidies, Tesla could stand to benefit even more from stricter emissions standards. The company generates significant revenue from selling carbon credits to automakers that fail to meet greenhouse gas reduction requirements, and a tougher mandate on vehicle emissions in the U.K. could create a lucrative market for these types of transactions.
During the first nine months of 2024, Tesla earned over $2 billion from selling these credits, adding to the more than $9 billion it has made from the practice since 2009.