Climate Policy Engagement Analysis
Climate Policy Engagement Overview: Tesla has actively and positively engaged on a number of streams of climate legislation globally in 2022-24. The company has supported ambitious policies globally to phase-out ICE vehicles in the EU, UK, and at the state level in the US, and has advocated for high-stringency GHG emissions standards for road transport in Australia, the EU, UK and US.
Top-line Messaging on Climate Policy: Tesla has mostly positive top-line messaging on climate policy. Tesla advocated for GHG emissions reductions in line with a 1.5°C target in a June 2023 US consultation response . In a May 2023 Australian consultation response, the company supported the UNFCCC process and supported the goals of the Paris Climate Agreement.
Engagement with Climate-Related Regulations: Tesla has actively supported numerous key climate regulations globally, engaging directly with multiple regulatory agencies to advocate for more ambitious GHG emissions standards. In the US, Tesla strongly supported GHG emissions standards for light- and medium-duty vehicles MY 2027+ and advocated to increase the stringency of the standards and to remove flexibilities in the regulation in July 2023 regulatory comment. Tesla similarly supported GHG emissions standards for heavy-duty vehicles in a June 2023 regulatory comment, pushing to increase the stringency of the standards. The company supported ambitious Corporate Average Fuel Economy standards MY 2027+ in an October 2023 regulatory comment.
Tesla supported an increase in the ambition of EU emissions standards for heavy-duty vehicles and closing regulatory loopholes in a January 2023 meeting with the European Commission, found by FOI request. In the UK, Tesla advocated for the government to adopt high-ambition CO2 emissions standards for light-duty vehicles in a May 2023 consultation response.
In Australia, the company supported high stringency GHG emissions standards for light duty vehicles in a March 2024 consultation response, a September 2023 regulatory comment, and in a May 2023 regulatory comment in line with New Zealand’s Clean Car Standard.
Positioning on Energy Transition: Tesla has consistently supported measures to electrify road transport globally. In April 2023 comments to California regulators, the company supported an ambitious Advanced Clean Fleets rule. Tesla strongly supported California's requests to the EPA for the issuance of a pre-emption waiver authorizing the California Air Resources Board (CARB) to enforce the Advanced Clean Trucks (ACT) regulation under the Clean Air Act in an August 2022 regulatory comments and a December 2022 joint letter. Regarding light-duty vehicles, in May and July 2022 regulatory comments, Tesla advocated for greater stringency in California's Advanced Clean Cars II regulation, calling for the 100% ZEV mandate for light-duty vehicles to be brought forward from 2035 to 2030 in the latter. In April 2022 testimony, Tesla also called for state-wide minimum requirements for EV charging readiness in new commercial buildings in Colorado, while in Hawaii, it appeared to support wider access to the EV charging system rebate program in testimonies in February, March and April 2022. In the US, Tesla advocated for legislation to support the electrification of light-duty road transport in a July 2023 written testimony to the Pennsylvania House Transportation Committee.
In other global regions, Tesla supported strong targets for a UK ZEV mandate in a May 2023 government consultation response. The company also advocated for an ICE phaseout by 2030 in an August 2023 joint letter to the UK government. Tesla also supported an ICE ban in New Zealand in a July 2023 consultation response, and supported an ambitious residential electrification strategy to accelerate the adoption of EVs in Australia in a September 2023 government consultation response. In Canada, Tesla supported increasing the ambition of a zero emissions vehicle (ZEV) sales mandate in a March 2023 consultation response. In a July 2024 EU consultation response, accessed via FOI, Tesla supported the introduction of mandatory targets for ZEVs in corporate fleets, alongside incentives.
Industry Association Governance: Tesla has not disclosed its membership to industry associations on its corporate website or published a review of its alignment with its industry associations. The company is a member of numerous industry associations with highly positive climate policy engagement including SolarPower Europe and SmartEN in Europe, Australia’s Clean Energy Council, and the Zero Emissions Transport Association (ZETA) in the US. Tesla senior executives sit on the board of the European Association for Electromobility (AVERE), which has positive climate policy engagement. Tesla was formerly a member of the Federal Chamber of Automotive Industries (FCAI) but left the organization in March 2024, citing concerns over the group's negative climate policy engagement.