Tesla, Rivian, and others see billions in revenue disappear as US officially end emission credits
Tesla, Rivian, and other EV automakers in the US are seeing billions of dollars in revenue disappear as the US is officially ending the emission credit market.
As we previously reported, Trump’s recently passed ‘Big Beautiful Bill’ is expected to have numerous impacts on the EV sector in the US.
The main one is the removal of the federal tax credit for the purchase of electric vehicles on September 30th.
Another change is the end of penalty enforcement for automakers with lower average fuel economy – aka those that produce more gas-guzzling vehicles and fewer electric vehicles.
This change is now already entirely in effect.
The National Highway Traffic Safety Administration (NHTSA) has officially stopped issuing compliance letters to automakers for violating fuel economy standards. This eliminates the market for credits under the Corporate Average Fuel Economy (CAFE) standard.
Automakers that didn’t comply with CAFE rules had to pay fines or purchase credits from other automakers that had a surplus, primarily those that only sell electric vehicles, such as Tesla, Rivian, and Lucid.
Those automakers would sell the credits for less than the fines, but now that the Trump administration has officially eliminated the penalties, it has officially killed the market for credits.
Many automakers had deals to purchase the credits, and following the passing of the ‘Big Beautiful Bill’, it wasn’t clear if those deals would continue or if
The Zero Emission Transportation Association (ZETA), an EV trade group, filed a petition in the U.S. Court of Appeals to force NHTSA to resume issuing the letters.
In comments attached to the petition, Christopher Nevers, Rivian’s director of public policy, stated that the company is unable to finalize its credit deals due to the NHTSA’s decision to end the issuance of compliance letters, resulting in a loss of $100 million in revenue.
Rivian no longer expects any CAFE credit revenue this year.
A NHTSA spokesperson claimed that it will return to issuing compliance letters after a review of the CAFE standards (via investing.com):
“NHTSA is focusing on fixing CAFE standards to make cars more affordable again. When that process is complete, we will return to issuing compliance letters to manufacturers.”
But there’s significant doubt that this will happen under the Trump administration.
Ironically, the automaker most affected by this change is Tesla, whose CEO donated hundreds of millions to Trump’s campaign.
Over the last four quarters, Tesla reported almost $2.5 billion in revenue from regulatory credits, which accounted for a significant portion of its net income during the period.
Those are global regulatory credit revenues, and the automaker doesn’t disclose what part comes from the US, but it is estimated that as much as half comes from its US sales.
Electrek’s Take
It’s a sad day. This was a direct transfer of money from companies that contribute to deadly pollution to companies that try to reduce that pollution.
It was undeniably a good thing, and we are now already seeing automakers slow down their electric vehicle plans in the US.
Yesterday, I asked Honda executives what they think are the main reasons for the slow adoption of electric vehicles in the US, and their response was emphatic: “policies”.
It’s not just the actual policies, but the uncertainty and constant changes that make it hard to deploy a clear strategy.
In my opinion, EVs are the superior product, and automakers should strive to deliver the best product possible. However, corporations have different objectives, and I understand that these policy changes make it challenging to operate.
The result is that the US will fall further behind in electric vehicles while the world moves forward at full speed.
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MINI has partnered with lifestyle brand, Deus Ex Machina, to develop this. It’s called the Skeg, and it’s a high-performance, racing-inspired electric concept car that’s sure to lighten the mood – by shedding fully 15% of its mass in the quest for speed.
One of a pair of exclusive, one-off concepts based on MINI’s John Cooper Works cars. The Deus Ex Machina Skeg celebrates MINI’s storied racing history with what the company calls, “a clean, minimal, and quiet rebellion,” that draws on materials, technologies, and philosophies from the world of surfing.
The electric MINI JCW Skeg is stripped to its essentials, with much of the steel and aluminum bits replaced with lightweight fiberglass to maximize acceleration while driving the minimalist aesthetic home. The end result weighs 15% less than the standard car – but makes the same stout 190 kW (258 hp) as the production car.
Surf’s up
The interior is stripped back to the barest essentials, reflecting BMW’s vision of a surf culture that prioritizes function over form. MINI claims the end result resembles a mobile surf shop, with fiberglass trays for wetsuits, specially shaped bins, neoprene seats, and other touches that “bring the surf culture into the interior.”
For their part, the BMW and MINI styling team seems pretty proud of its minimalistic electric endeavor. “In this extraordinary collaboration … every single detail has been crafted with artisanal precision and expertise,” says Holger Hampf, Head of MINI Design. “This has resulted in unique characters that are clearly perceived as belonging together through their distinctive design language and use of graphics.”
The concept retains the production version’s 54.2 kWh li-ion battery pack, up to 250 of WLTP range with the production aero kit, sprints from 0-100 km (62 mph) in just 5.9 seconds. With 15% less mass, though, that should jump to more than 255 miles, with 0-60 times dropping below 5.5 seconds.
I dig it – but I’d skip the surf bits and just appreciate the raw composite, minimalist interior look for what it is. Take a look at the image gallery, below, then let us know what you think of MINI’s Skeg concept in the comments.
MINI Skeg concept | gallery
SOURCE | IMAGES: BMW MINI.
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Environment
Volvo Penta teams up with e-power to equip Boels with next-gen Battery Energy Storage Systems (BESS)
Veteran marine and industrial power solutions company Volvo Penta has joined forces with energy solutions provider e-power to build battery energy storage systems (BESS). Volvo Penta’s battery systems for energy storage will power BESS units built by e-power that can be catered to a range of applications, most notably construction rental clients like Boels Rentals in Europe.
Volvo Penta is a provider of sustainable power solutions that currently serves land and sea applications under the Volvo Group umbrella. As more and more of the world goes all-electric, the global manufacturer has also adapted, sharing cultural values with Volvo Group to engineer new and innovative sustainable power solutions.
Nearly 100 years later, Volvo Penta remains an industry leader in marine propulsion systems and industrial engines. As more and more of the world goes all-electric, the Swedish manufacturer has also adapted, sharing cultural values with Volvo Group to engineer new and innovative sustainable power solutions.
For example, all Volvo Penta diesel engines now run on hydro-treated vegetable oil (HVO), reducing well-to-wheel emissions by up to 90% across the marine and industrial power industries. On the zero-emissions side, Volvo Penta has expressed its dedication to fossil-free power solutions, including battery electric components to serve heavy-duty applications such as terminal tractors, forklifts, drill rigs, and feed mixers, to name a few.
To leverage its battery electric value chain, Volvo Penta has also ventured into battery systems for energy storage (or BESS subsystems). These energy-dense, purpose-built BESS subsystems can provide portable, sustainable energy for all-electric charging and reduce grid dependency.
Volvo Penta to deploy battery systems for energy storage
Volvo Penta recently announced a strategic partnership with e-power, a Belgian power solutions provider. Together, Volvo Penta and e-power will develop a scalable Battery Energy Storage System (BESS) for Boels Rental.
The collaboration continues a long-standing partnership between all three companies. Boels – one of the largest construction rental companies is a long-time customer of e-power generators that utilize Volvo Penta engines. As the company shifts toward electrification and sustainability, it will again turn to those companies to deliver reliable performance.
Volvo Penta’s BESS subsystem comprises battery packs, a Battery Management System (BMS), DC/DC converters, and thermal management, combining to offer a compact, high-density, and transport-friendly solution optimized for rental operations. The company shared that this BESS design is integration-ready, enabling other OEMs like e-power to adapt and scale systems to customer-specific needs. Per e-power business support director, Jens Fets:
We’ve built our reputation on reliability and efficient power systems. Working again with Volvo Penta, this time on battery energy storage, allows us to meet the growing demand for energy in a silent, low-emissions, compact and mobile design—especially in rental applications.
The deployment of these new battery energy storage systems will help Boels cater to its customers’ growing demand for clean, silent, and mobile energy solutions in construction and other industrial applications.
Aside from being more quickly adaptable to customer needs, Volvo Penta says its BESS architecture marks an overall shift in rental power systems. This is welcome news for all who support a cleaner, more sustainable future across all industries.
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That didn’t take long! Just a few hours after Mercedes revealed the screen-heavy interior of its upcoming 2026 GLC EV, photos of the new crossover’s exterior – and that controversial grille! – leaked on Instagram and Reddit. We’ve got them here.
Two days ahead of the GLC EV’s officially schedule global debut, images that reportedly show the new 2026 Mercedes undisguised have leaked on Instagram and Reddit. They show the blocky new light-up grille on the nose of a very smooth, jellybean-like crossover shape that, despite Mercedes’ insistence that it’s moving away from the EQ series’ design language, looks an awful lot like an EQ Mercedes.
Check out the leaked images from kindleauto’s Instagram account, below, and see if you agree with that assessment.
If you need to see more before you feel comfortable commenting on the new SUV’s looks, there’s a few more angles over on the r/mercedes_benz subreddit.
Leaked exterior pictures of the upcoming GLC EV
byu/Quick_Coyote_7649 inmercedes_benz
As with everything else on the internet, take those unofficial images with a grain of salt and maybe wait until the GLC EV’s official reveal in a few days’ time before casting your final vote on the new look – but there’s very little reason to believe the new Mercedes will look terribly different from what you see here.
Will the new grille and tech-forward interior with its massive, 39″ screen and MB.OS software be enough to turn the tide for Mercedes-Benz, enabling it to finally gain some traction in the electric crossover market? That remains to be seen, but the recently updated Tesla Model Y and crisply-styled new BMW iX3 with its 500 miles of range will make it an uphill battle, for sure.
We got a sneak peek at the new GLC back in July, when Mercedes-Benz Group CEO, Ola Källenius said that, “We’re not just introducing a new model – we’re electrifying our top seller.” Back then, we learned that the new GLC EV would have a wheelbase 3.1″ longer than the current ICE-powered model, as well as more head- and leg-room for its occupants and an extra 4.5 cubic feet (for 61.4 total) of cargo space.
Källenius also promised an innovative new 800V electric architecture and the latest battery tech, which will enable the electric GLC to add around 260 km (~160 miles) of WLTP range in just ten minutes thanks to more than 300 kW of charging capability.
SOURCES | IMAGES: kindleauto; Quick_Coyote_7649.
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