NHTSA Proposes Stricter Fuel Economy Standards, Drawing Criticism from Automakers and Support from Tesla

NHTSA proposed raising fuel economy standards 2% annually for cars and 4% for SUVs between 2027-2032.

Most automakers criticized the proposal as too strict, while Tesla said standards should be even higher.

Automakers claimed the goals are unreasonable and could face $14B in penalties.

Toyota said there's insufficient technology to meet the standards.

Tesla makes income from selling carbon offsets and wants tougher standards, but new EV rating system could reduce their value.