Tesla has gone to court to impose higher emissions penalties for automakers that exceed emission quotas. The fines were delayed by the Trump administration.
Last month, several states and environmental groups sued the US National Highway Traffic Safety Administration (NHTSA) for delaying higher fines for automakers that fail to meet fuel efficiency requirements. They were adopted during the Obama administration but shelved by the Trump administration.
The Trump administration on January 14 postponed the introduction of higher fines until the 2022 model year. According to Tesla, this action was illegal and therefore should be reversed. The company believes that the delay is causing economic damage to it.
These fines are considered the biggest short-term incentive for automakers to switch to electric vehicles.
Carmakers who do not meet emission standards can avoid fines by buying allowances from carmakers who do not consume their own allowances. For example, Tesla, which only sells all-electric vehicles. Tesla’s sales of emissions allowances through several programs generate hundreds of millions of dollars annually.