EV laggards Toyota and Stellantis complain about proposed EPA emissions rules
Toyota and Stellantis, two of the world’s largest automakers with a history of opposing an all-electric future, filed complaints with the US government as the EPA finalizes its 2027-2032 proposed emissions standards to slash air pollutants and greenhouse gas emissions.
In April, the EPA revealed new, more aggressive proposed emissions standards under its Clean Air Act authority that improved upon President Biden’s previous goal of having 50% of new vehicle sales be electric by 2030.
The proposed rules would establish stricter vehicle emissions standards for air pollutants and greenhouse gas (GHG) emissions, starting from model year 2027 and running through 2032.
As the EPA notes, the transportation sector is the largest US source of GHG emissions representing 27.2%. Within the sector, light-duty vehicles are the biggest contributor at 57.1%, thus representing 15.5% of total US GHG emissions.
The Biden administration has recognized the potential of zero-emission EVs and their ability to significantly reduce emissions. As such, the administration has passed several landmark bills to provide significant funding and support as the auto industry transitions to electric.
Since the passing of the Bipartisan Infrastructure Law of 2021 and the Inflation Reduction Act (IRA) last year, over $100 billion in new US battery manufacturing and supply chain investments have been announced, while another over $30 billion is planned to go toward over 70 new or expanded EV component or assembly plants.
The EPA says industry advancements in EV production and sales are already happening globally and here in the US due to significant investments from automakers, a growing preference for zero-emission, and added government support.
According to the EPA, these advancements “represent an important opportunity for achieving the public health goals of the Clean Air Act.” Its new emissions rules, which project EV market share reaching about 60% by 2030 and 67% by 2032, forecast nearly 10 billion tons of emissions can be avoided.
Toyota, Stellantis complain about EPA’s emissions rules
According to the comments filed (via Bloomberg), Toyota and Stellantis believe the EPA’s proposed “multi-pollutant” emissions standards promote unrealistic sales goals (maybe for them).
Toyota said the EPA’s proposal “underestimates key challenges, including the scarcity of minerals to make batteries, the fact that these minerals are not mined or refined in the US, the inadequate infrastructure, and the high cost of battery-electric vehicles.”
The Japanese automaker has been arguably the biggest laggard as the auto industry transitions to fully electric vehicles. Of the over 4.15 million cars sold globally in the first half of the year, only a fraction (about 0.19%) were fully electric.
Toyota has insisted on sticking to a “multi-pathway” approach that includes hybrids and fuel cell EVs. Even its shareholders are raising concerns over the automaker falling behind EV leaders like Tesla.
Meanwhile, Stellantis (the parent company behind Ram, Jeep, Dodge, Chrysler, Fiat, etc.), which has yet to put a fully electric passenger vehicle on the streets in the US, said the EPA’s plan had an “overly optimistic expectation for EV market growth.”
Stellantis argued the EPA forecasted EV “adoption rate far exceeds what is supported by the policy actions in place and adds significant risk to the automotive industry who must comply with these standards whether these assumptions hold true or not.”
The automaker’s first electric pickup, the 2025 RAM 1500 REV, is due out later this year, while Jeep is slated to release its first EVs, the Recon and Wagoneer S.
Both Toyota and Stellantis have given more attention to EVs lately with a series of investments from each, including next-gen EV battery tech and new dedicated platforms as EV sales heat up across all key auto markets.
Electrek’s Take
The news comes as no shocker as both Toyota and Stellantis have a rich history of opposing going all in on electric.
Toyota is one of the few automakers that have yet to set a date that it plans to only sell electric cars, while Stellantis is aiming for a 50% EV share in the US (100% in Europe) by the end of the decade.
Meanwhile, Tesla told the EPA that the US could go all-electric by 2030, but it would be okay with a 69% EV share by 2032.
Several markets have already proven it can happen, like Norway, for example, yet legacy automakers (who continue investing in ICE vehicles, by the way) are pushing against it.
Rather than fighting the change, both Toyota and Stellantis could take advantage of the rapidly changing US market as the need for high-volume electric options continues climbing.
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Environment
Trump targets solar and wind with tighter federal permitting in another blow to renewable industry
Lucid Motors’ (LCID) shares soared over 50% after the company secured a multi-hundred-million dollar investment from Uber to deploy robotaxis. So, why did Lucid just announce plans for a reverse stock split?
Why did Lucid announce a reverse stock split?
Lucid and Uber announced a new alliance on Thursday to deploy 20,000 electric robotaxis over the next six years.
The new robotaxi service, set to launch next year, will combine Lucid’s advanced software-defined EV platform with Nuro’s Level 4 self-driving tech.
As part of the new alliance, Uber plans to make “multi-hundred-million-dollar investments” in Lucid and Nuro. The first autonomous prototype is already in operation on a closed track at Nuro’s facility in Las Vegas.
Lucid’s interim CEO, Marc Winterhoff, said, “This investment from Uber further validates Lucid’s fully redundant zonal architecture and highly capable platform as ideal for autonomous vehicles.” Winteroff claimed that the new alliance “is the start of our path to extend our innovation and technology leadership into this multi-trillion-dollar market.”
The Lucid Gravity boasts an impressive EPA-estimated range of 450 miles. Its electric sedan, the Lucid Air, just broke a Guinness World Record after traveling 749 miles (1,205 km) on a single charge.
Lucid’s partnership with Uber sent share prices surging over 50% during trading hours on Thursday. In a separate filing with the SEC today, Lucid announced plans to initiate a 1-for-10 reverse stock split.
The split won’t affect shareholder ownership, except in cases where fractional shares are created. In that case, shareholders will receive a cash payment.
Lucid said it believes the reverse stock split “will allow the company’s common stock to be more attractive to a broader range of investors and other market participants.”
A vote of confidence
During an interview with Bloomberg on Thursday, Winterhoff explained that a portion of the $300 million investment from Uber will be used to develop the self-driving tech with Nuro. Winterhoff added that Lucid’s surging share price was “a vote of confidence.”
According to Winterhoff, the reverse stock split is not due to Lucid’s fear of being delisted, but rather to attract larger investors.
It was also more of a “technical” strategy to reduce volatility and help Lucid participate in the broader stock market.
Many institutional investors avoid stocks priced below $5 due to the higher risk and price swings. The proposed stock split still requires shareholder approval, which will be voted on at an upcoming special stockholders’ meeting.
After that, Lucid’s Board of Directors will determine whether it’s still in the best interest of the company and its stockholders to proceed.
Lucid’s stock rose over 36% on Thursday, closing at $3.12 per share. Although shares of LCID are up just slightly (+2%), they are now up year-to-date. However, they are still down 18% over the past year and nearly 95% from their all-time high of over $58 a share in February 2021.
Last week, after meeting with Lucid’s CFO, Taoufiq Boussaid, Benchmark analyst Mickey Legg set a target share price of $5.00, which was subsequently raised to $7.00 following the announcement of the Uber partnership.
Legg wrote a note to investors, “After meeting with LCID’s CFO Taoufiq Boussaid on Tuesday and reviewing 2Q production and deliveries, we remain confident in the company’s path to scale.”
Lucid delivered a record 3,309 vehicles in Q2, its seventh straight quarter with higher deliveries. The company aims to produce 20,000 vehicles this year, more than double the roughly 9,000 it made in 2024.
After ending the first quarter with $5.76 billion in liquidity, Lucid said that it has sufficient funding to last until the second half of 2026, when it plans to launch its more affordable midsize EV platform. The first two models will be a midsize SUV and sedan, starting at about $50,000.
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IONNA, the EV charging joint venture backed by eight automakers – BMW, General Motors, Honda, Hyundai, Kia, Mercedes-Benz, Stellantis, and Toyota – just announced its biggest charging deal yet. It’s teaming up with convenience store favorite Wawa to roll out ultra-fast EV chargers at locations across the US.
The first site opens next week at Wawa’s W. International Speedway in Daytona Beach, Florida. More Rechargeries (yup, that’s what IONNA calls them) are already under construction in Bradenton, Pensacola, and Orlando. The partnership will be a big boost to both IONNA’s national charging goals and Wawa’s growing EV infrastructure.
The Daytona Beach Wawa will feature IONNA’s blue-and-orange 400kW Genuine Charge Dispensers, canopy coverage, car care essentials, and, of course, access to Wawa’s refreshments and restrooms.
“Next week’s opening of the IONNA Rechargery at Wawa in Daytona Beach will bring our total bay count to 212 live and 3,064 contracted. That is over 10% contracted to our 2030 live bay goal in just over a year,” said IONNA CEO Seth Cutler.
Wawa’s chief fuel officer, Rich Makin, added, “With an ongoing commitment to providing our customers with speed and convenience, our new collaboration with IONNA does just that.”
IONNA aims to install 30,000 fast charging bays across North America by 2030.
Read more: Waffle House is getting DC fast chargers – and it’s a genius move
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