FILE PHOTO: Tesla logo is seen in this illustration taken July 23, 2025. REUTERS/Dado Ruvic/Illustration//File Photo

By David Shepardson

WASHINGTON (Reuters) -Electric vehicle manufacturer Tesla urged the Trump administration not to repeal vehicle emissions standards or the long-standing U.S. finding that greenhouse gas emissions endanger human health.

Tesla said in comments posted on Thursday that the Environmental Protection Agency's proposal to repeal the standards "would give a pass to engine and vehicle manufacturers for all measurement, control, and reporting of GHG emissions for any highway engine and vehicle."

Earlier this week, a group representing General Motors Toyota, Volkswagen and nearly all other major automakers, asked the EPA to roll back its aggressive vehicle emissions limits that seek to force the industry to build a rising number of electric vehicles.

Tesla stands to lose billions of dollars in regulatory credits sold over the coming years as a result of the Trump administration's dismantling of green vehicle rules.

Last year, Tesla said it received $2.8 billion in global revenue from earning regulatory credits for selling zero-emission EVs, and from selling those credits to other automakers seeking to meet vehicle emissions targets.

Republican Senator Bernie Moreno of Ohio said at a hearing in July that the costs automakers paid Tesla to be in compliance were "outrageous."

The EPA’s proposed action "undermines the stability of this program, diminishes the value of performance-based incentives that electric vehicle manufacturers accrue under the standards, and creates an uneven playing field - reducing the inducement for investment in vehicle innovation," Tesla said.

In 2019, Tesla began spending $25 per vehicle to generate credits by using environmentally friendly air conditioning.

"This investment ultimately amounted to tens of millions of dollars when scaled over millions of vehicles produced for North America since this time," Tesla said.

Tesla CEO Elon Musk was a close adviser to U.S. President Donald Trump, before they had a public feud earlier this year. Trump suggested Musk's objection to a major budget bill was because it eliminated consumer tax credits for electric vehicles, which will end on September 30.

In July, the administration told automakers they face no fines for failing to meet fuel efficiency rules dating back to the 2022 model year.

Trump in June signed a resolution of disapproval under the Congressional Review Act to bar California's landmark plan to end the sale of gasoline-only vehicles by 2035.

(Reporting by David Shepardson; Editing by Chris Reese and Nia Williams)