Lula’s victory in Brazil sparks optimism on deforestation, with ramifications for the world
Luiz Inacio Lula da Silva, Brazil’s former president, center, addresses supporters after winning the runoff presidential election in Sao Paulo, Brazil, on Sunday, Oct. 30, 2022.
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The narrow win by Luiz Inácio Lula da Silva in the Brazilian presidential election marks a key turning point on environmental issues, analysts say.
Da Silva, commonly known as Lula, took 50.9% of the second round vote to incumbent Jair Bolsonaro’s 49.1%, according to Brazil’s election authority.
The 77-year-old leftist campaigned on policies including exempting the lowest earners from income tax, raising the minimum wage and upping investment in public services to create new jobs. He has vowed to reduce poverty and boost economic growth, citing his record of doing so when he served two terms as president from 2003 to 2010.
The remarkable political return comes after he was jailed in 2017 on money laundering and corruption charges that were overturned in 2019.
“It’s a significant change, I can’t emphasize how much things will be different in this country with Lula’s election,” James Green, professor of Latin American History at Brown University, told CNBC’s “Squawk Box Europe” Monday, citing planned increases in welfare provision, more public-inclusive decision making, and the return of a “government of transparency.”
It also, Green said, “means a return to policies to save the Amazon.” As well as containing 25% of the world’s terrestrial biodiversity, the Amazon plays a crucial global role through storing billions of tons of carbon and releasing billions of tons of water each year.
Lula used his victory address to pledge to combat climate change and deforestation — issues observers say have not just been sidelined but severely worsened under Bolsonaro’s tenure.
Deforestation in the Brazilian Amazon rose to an all-time high in the first half of 2022 and was 80% higher than the same period in 2018, the year before Bolsonaro took office, according to a report by the Amazon Environmental Research Institute.
Bolsonaro has been criticized for enabling the proliferation of illegal activity in Brazilian rainforests — including land grabs and violence against indigenous people and campaigners — through funding cuts to on-the-ground law enforcement; slashing the national environment agency’s budget; seeking to overturn environmental regulations; approving thousands of new pesticides; and appeasing the country’s powerful agricultural businesses by failing to act on encroachment onto protected lands.
Brazil has also failed to detail plans to cut carbon emissions in line with international agreements, according to Human Rights Watch, and its emissions from agriculture and cattle-raising have risen to the highest level on record.
Bolsonaro’s office was not immediately available for comment when contacted by CNBC. Bolsonaro has previously said he was taking action to protect the rainforest; but he has also defended the expansion of mining projects, while also accusing foreign governments and the media of exaggerating the damage being done. In 2019, he told foreign journalists: “No country in the world has the moral right to talk about the Amazon. You destroyed your own ecosystems.”
Environmental turnaround?
Organized crime has taken hold of several areas of the Amazon during Bolsonaro’s presidency, with many illegal miners and land grabbers seeing him as an ally, Carlos Rittl, international policy advisor and Brazil specialist at Norwegian NGO Rainforest Foundation, told CNBC on a call.
“Around 95% of deforestation in the last four years in the Amazon has had some level of illegality,” he said. “Areas that should have remained as forest have become private land, indigenous land has been invaded. It has reached this level because of the inaction of the government.”
“If we take a look at the promises Lula has made, including in his victory speech last night, he was addressing several major problems but also net zero deforestation, protecting indigenous people’s rights,” Rittl continued.
“We can expect him to re-strengthen the environmental agency and recover the budget to allow them to act against environmental crimes” — but only so long as he “walks the talk,” Rittl said.
It won’t be easy or immediate, he added, for a variety of reasons. A 2023 budget has already been agreed and systems have to be rebuilt and put to work. Lula will be seeking consensus in a strongly divided country and political system. And things have changed since his previous term (when annual deforestation of the Amazon plunged from 25,396 sqkm in 2003 to 7,000 sqkm in 2010) due to higher levels of organized crime with a strong foothold.
International cooperation on these efforts will be important, Rittl added. Norway is already looking to resume aid for anti-deforestation efforts to Brazil, which it suspended during Bolsonaro’s term, local newspaper Aftenposten reported Monday.
Growth targets
A further challenge is the pressure on Lula to start delivering on the economy, job creation and poverty alleviation, themes he became known for during his previous term.
Brazil’s economy has stuttered over the last decade, falling into a deep recession 2015 and 2016 which was followed by a period of political instability. It was also heavily hit by the coronavirus pandemic, when its population suffered one of the world’s worst death tolls and inequality increased, according to think tanks. Inflation is set to average 5.8% this year and interest rates are near 14%.
Meanwhile, described by some commentators as socially rather than economically right wing, Bolsonaro also leaves behind various subsidy and unfunded spending programs that have added to Brazil’s high levels of debt, which Brown University’s James Green called a “series of time bombs.”
However, the Brazilian real has been among the only currencies to outperform the U.S. dollar this year due to commodities demand, central bank tightening and the economy’s distance from volatility such as the war in Ukraine.
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It remains to be seen how international investors will respond to the return of a Lula presidency, especially one with significant spending pledges to fulfil, and where he will take Bolsonaro’s planned pro-market reforms and privatizations.
The real dropped 2% on the news, before trimming losses, and shares in U.S.-listed Brazilian companies, including oil giant Petrobras, fell in pre-market trading.
The immediate concern for markets and also Brazilians and the international community is political stability during the handover of power, which is set to take two months.
There are still questions over whether Bolsonaro will challenge the election outcome. He could also seek to block a smooth transition, Green noted.
Energy question
And if he has set ambitious goals to cut deforestation to zero and review emissions targets in line with the Paris Agreement, Lula has also acknowledged oil will be necessary for some time and would oversea an increase in oil and gas production, Climate Home News reports.
Brazil has a relatively clean domestic energy supply, with nearly half of its power coming from renewable sources. But it is also a major oil producer, with its crude oil exports providing a key income source along with soaring commodities demand during Lula’s previous terms.
Rittl said there was potential for an even greater shift toward renewable energy domestically.
Beyond that, he continued: “We need to see finance for agriculture that is linked to emissions reduction, protecting the environment, controlling fertiliser use and managing cattle. Brazil needs mandatory emissions reductions standards and an updated plan to fulfil them.”
“It needs economic policies that are aligned with climate policies to make sure that infrastructure, agriculture and industry are all drivers for change in Brazil,” Rittl added.
Environment
RadRunner e-bikes from $999, EcoFlow DELTA Pro 3 with solar panels $2,999, Anker Everfrost review, more
Well folks, the weekend is nearly here and before it officially arrives we’ve pieced together the latest roundup of Green Deals. Leading the pack today are RadRunner 2 and 3 Plus e-bikes from $999 as well as an EcoFlow flash sale that takes the brand’s robust DELTA Pro 3 with four 125W solar panels down to a new $2,999 low. We’ve also went hands-on with Anker’s SOLIX EverFrost 2 58L Electric Cooler, and the full review is waiting for you to scope out right here. There are also plenty of other deals from earlier in the week that are still live, so head below and we’ll get you caught up on what you may have missed.
Head below for more and, of course, Electrek’s best EV buying and leasing deals. Also, check out the new Electrek Tesla Shop for the best deals on Tesla accessories.
Rad’s ‘jack-of-all-trades’ RadRunner 2 and RadRunner 3 Plus e-bikes provide utility with mobility at low prices from $999
Having begun back in February, and now continuing with Rad Power’s current Earth Day Sale running through April 23, the brand still has two of its three RadRunner series e-bikes down at the lowest prices in their history, while the RadRunner Plus model has run out of stock. Starting with the lowest priced, you can hop aboard the brand’s RadRunner 2 Utility e-bike for just $999 shipped, bringing costs down from its $1,499 post-2024 tariff pricing. Before this price cut began, things had only ever fallen as low as $1,199 before the summer of last year, with discounts following July only ever dropping to $1,299. But with this shake-up, you’ll score $500 off the going rate for as long as supplies last, gaining a versatile means to commute and run errands at the lowest price we have tracked.
Given the moniker of Rad’s “jack-of-all-trades” model, the RadRunner 2 is an affordable means to get around during commutes, joyrides, errand running, and more. I see them, and their counterparts in the series, parked outside my local grocery store frequently, as more and more folks in Brooklyn seem to be finding them as a solid alternative to owning a car. You’ll get up to 50 miles of travel here with its four PAS levels activated at up to 20 MPH top speeds with its combination of a 750W brushless gear hub motor and the 672Wh battery. Along with the simplified control panel for its riding settings, it also comes stocked with a rear-mounted cargo rack that offers a 120-pound payload, puncture-resistant fat tires, a standard LED headlight, and an integrated taillight with both brake light and flash mode capabilities.
The upgraded RadRunner 3 Plus e-bike, meanwhile, is also still down at it’s newest all-time low of $1,699 shipped, brought down from $2,199. It sports the same 750W motor and 672Wh battery combination for achieving 45+ miles of travel through its five PAS levels at up to 20 MPH speeds. There are some notable differences here, like the Tektro hydraulic disc brakes that provide better stopping power (over the RadRunner 2’s mechanical ones), as well as a 350-pound payload (50 pounds more total), and a longer step-thru design for a more ergonomic riding position. There are also other features like puncture-resistant fat tires, fenders over both wheels, the LED headlight and brake-light capable integrated taillight (with the auto-on functionality), and LCD screen for settings.
EcoFlow’s latest flash sale gives you the multi-capable DELTA Pro 3 with four 125W solar panels at a new $2,999 low, more
As part of its ongoing Mega Sale through April 25, EcoFlow has launched the next round of its flash offers lasting through the rest of the day. The main deal here is the DELTA Pro 3 Portable Power Station bundled alongside four 125W solar panels for $2,999 shipped. Coming down off its usual $4,598 price tag, we’ve only ever seen discounts take it down as low as $3,199 before today. For the rest of the day, you can take advantage of this lower-than-ever pricing to score one of the brand’s newer solar generator packages at a 35% markdown, giving you $1,599 in savings at a new all-time low price. It even beats out Amazon, where it still sits $300 higher.
One of the brand’s newer models that has been quite popular since releasing back in June, the EcoFlow DELTA Pro 3 starts off with an already impressive 4,096Wh LiFePO4 battery capacity with a steady 4,000W of power output that surges up to 6,000W. It comes with some equally impressive expansion capabilities up to 48,000Wh with additional equipment, with its output also expanding up to 12,000W when three of these power stations are connected together, covering major home backup needs. Among the many units under the brand’s flag, this one offers the widest amount of ways to recharge its own battery, with seven solo options and 18 combination options. A standard wall outlet will have it back at an 80% battery in 50 minutes, while also offering other options like solar charging (with a max 2,600W input), EV, automotive auxiliary outlets, dual PV charging, and much more.
It’s been given 14 output ports, divided up amongst seven ACs, two USB-As, two USB-Cs, and three DCs, and offers up the complete array of smart controls accessed through the companion app to monitor and adjust settings as it keeps your devices and appliances running. It was the first unit to be given the latest X-Core 3.0 tech, expanding its surging capabilities and charging speeds while also running at quieter decibels and cooler temperatures, as well as improving upon the battery and smart home management, providing “explosion-proof” battery packs, and upgrading its parallel capacity expansion performance.
The second of today’s flash savings gives you the brand’s 800W Alternator Charger at $349 shipped, coming down from its regular $399 pricing during this sale and its full $599 rate. With this device, you’ll be able to recharge any power station you have via your car’s alternator, juicing the battery back up while on the move – which makes a perfect companion for those who may be taking their setups on the road.
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A lawsuit alleging that Tesla is inflating mileage to avoid warranty claims is already being compared to Dieselgate and referred to as ‘Tesla Odometergate.’
Is Tesla having its own Dieselgate, or is it a nothing burger?
A new class action lawsuit filed in California against Tesla alleges that the automaker is using “predictive algorithms” to inflate mileage at the odometers, allowing Tesla to claim higher mileage past warranty limits.
Lawyers for the plaintiff wrote in the lawsuit:
Rather than relying on mechanical or electronic systems to measure distance, Plaintiff alleges on information and belief that Tesla Inc. employs an odometer system that utilizes predictive algorithms, energy consumption metrics, and driver behavior multipliers that manipulate and misrepresent the actual mileage travelled by Tesla Vehicles. In so doing, Defendants can, and do, accelerate the rate of depreciation of the value of Tesla Vehicles and also the expiration of Tesla Vehicle warranties to reduce or avoid responsibility for contractually required repairs as well as increase the purchase of its extended warranty policy.
The lawsuit refers to patents filed by Tesla regarding its mileage counter, but it primarily relies on the experience of its lead plaintiff.
Nyree Hinton, a data professional from Los Angeles, is the lead plaintiff in the lawsuit and shared his own experience that led to making these allegations.
In December 2022, Hinton purchased a used 2020 Tesla Model Y with 36,772 miles on the odometer. He received Tesla’s Basic Vehicle Limited Warranty, which covers repairs for four years or 50,000 miles, whichever comes first.
Shortly after, Hinton noticed that his vehicle’s mileage increased at an unexpected rate. Despite driving approximately 20 miles per day, based on his own estimate, the odometer indicated an average of over 72 miles per day. This rapid mileage accumulation led to the warranty expiring sooner than anticipated, resulting in Hinton incurring a $10,000 suspension repair bill that he believed should have been covered under the warranty otherwise.
Other than Hinton’s experience, the lawsuit is light on data, but it does cite other Tesla owners claiming to have similar experiences on forums and social media.
Here’s the full lawsuit:
Tesla’s own Dieselgate or a nothing burger
If the allegations in this lawsuit are factual, it would indeed be a significant scandal. However, it is light on proof.
Hinton appears to have closely tracked his own experience, and he has some credibility as a data analyst. We have no reason not to believe him, but the case would need a lot more evidence to move forward.
Electrek reached out to ‘Green’, a well-known Tesla hacker who frequently discovers new features and specifications in Tesla’s software and firmware.
He told us that he doubts Tesla would have been able to hide something like that from him and the broader whitehat hacking community, but he admits they weren’t looking for it.
Green believes that it is likely that Tesla uses predictive algorithms for its odometer, but it could be as simple as accounting for tire wear, since tire rotation is used to calculate odometer mileage.
Odometers are not perfect, and there can be some discrepancies, but the one described by the lead plaintiff in this case is undoubtedly higher than what would be expected or allowed.
Electrek’s Take
I think it’s too light on data and proof right now to make a big deal out of this. I have no reason not to believe Hinton, but it could also be a specific problem with his vehicle rather than a broader issue and active deception from Tesla.
If the lawsuit is allowed to proceed, we may gain more insight, and it could encourage others with similar experiences to join in – resulting in more data.
In the meantime, I’ll remain in the skeptical camp on this one.
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Environment
Tesla (TSLA) brand damage is destroying used car value: ‘People don’t want them anymore’
Tesla’s brand damage is eroding the value of used Tesla vehicles at a rapid rate, as owners rush to sell theirs.
It is breaking the used Tesla market as prices are plunging just as the broader used car market is recovering.
After a few tough years for the used car market following the pandemic, it is finally starting to recover over the last month.
Economic uncertainty and a fear of higher inflation due to Trump’s tariffs are prompting some buyers to shift from the new car market to the used car market.
From March 2024 to March 2025, average used car prices decreased by 2.68% in the US, but the trend has finally reversed.
According to Car Guru‘s used car index, used car prices have risen an impressive 2.17% in the last 30 days alone.
However, there’s an exception: Tesla.
The price of used Tesla vehicles has been falling, like the rest of the used car market, since the pandemic; however, it is not benefiting from the reversal in the current macroeconomic situation.
While average used car prices rose more than 2% in the last 30 days, Tesla’s used car prices decreased by 1.34% in the US.
That’s due to oversupply, as many Tesla owners are selling their vehicles to distance themselves from the Tesla brand, which is associated with CEO Elon Musk and his increasingly divisive political views.
The demand to sell used Tesla vehicles is so high that many used car dealers, who had been fighting to acquire inventory just a year prior, are starting to be reticent about buying Tesla vehicles as the value decreases so rapidly.
In Quebec, Le Journal de Montréal spoke with local used car dealers and attended a car auction where many Tesla vehicles were up for sale, with some selling for half the price they were selling for just over a year ago.
Éric Piuze, owner of a used car dealership on Montreal’s South Shore, said (translated from French):
“People don’t want them anymore. The Elon Musk effect is very real in Quebec.”
The used car dealers at the auction noted that they are not confident they can sell the used Tesla quickly enough to avoid further value decreases.
Furthermore, they note that potential buyers are lowballing on Tesla vehicles because they are aware that inventory is high, creating a buyer’s market.
Dealers are also seeing higher defaults on Tesla car payments, as buyers who took on debt to purchase them just a few years ago struggle to make payments.
Piuze added (translated from French):
People paid a lot of money for Teslas. During the pandemic, we saw many people remortgaging their homes to buy a Tesla. Those days are over.
At its peak, the average used Tesla price was over $60,000 in 2022. Now, the same vehicles are worth a fraction, but their car payments are still high.
Electrek’s Take
Even with the used car market finally getting a breather from crashing prices, Tesla vehicles are not benefiting at all. This highlights a significant issue in the used Tesla market. It’s broken.
The market can’t absorb the surge in people selling their Tesla vehicles.
I wouldn’t want to be a company holding a fleet of Tesla vehicles right now. The value erosion is impressive.
I thought that maybe the Cybertruck was dragging the entire Tesla market down, with a 6.64% decrease in used value over the last 30 days. However, the Model Y alone saw a 1.67% decrease during the same period.
The good news is that the vast majority of people selling their used Tesla vehicles are purchasing other electric vehicles, thereby boosting the EV market. It’s also giving people the chance to get into Tesla vehicles for cheaper, although they should expect the value of those vehicles to decrease rapidly.
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