Biden Administration Tightens Vehicle Fuel Mile Limits To Boost Electric Vehicle Market

The Biden administration stiffened vehicle fuel mile standards on Friday as part of its plan to have emissions-free electric vehicles dominate America’s automobile sector, according to reports.

The new standards, announced by the U.S. Department of Transportation, are among several White House regulations that are designed to push carmakers toward making more electric vehicles. the New York Times reported.

The Environmental Protection Agency issued strict new limits in April on tailpipe pollution that are aimed at ensuring that most new passenger cars and light trucks sold in the U.S. are all-electric or hybrids by 2032, up from 7.6 percent last year, according to the New York Times.

Shares Of US Carmakers May Be Affected

The tighter measures may impact the shares of publicly traded automobile makers that are developing electric vehicles.

Chevrolet is aiming to unseat Tesla as the top U.S. electric vehicle maker, Business Insider reported, at a time when parent company General Motors is facing challenges in the electric vehicle market.

Tesla is facing its own troubles, with a drop in deliveries and electric vehicles in the first quarter of 2024, UpWallStreet reported. This shift in the EV market could provide an opening for Chevrolet to make significant strides in the industry.

Also Read: Forget Tesla And Rivian: America’s Iconic School Bus Maker Smokes EV, Auto Giants With 117% Stock Surge

Legacy automakers are increasingly challenging Tesla's dominance with their own EV offerings. For instance, Ford Motor Company F and Rivian Automotive RIVN have been making strides with their electric pickup trucks, posing a potential threat to Tesla's Cybertruck.

Meanwhile, GM is also trying to level the playing field with Chinese EV manufacturers. GM President Mark Reuss recently voiced concerns about China's pricing strategies potentially driving out local players. This reflects the broader competition and challenges in the global EV market.

General Motor’s shares gained $0.31 on Friday to close at $45.80, while Ford’s stock gained $0.17 to end the trading day at $12.15, according to Yahoo Finance.

Tesla shares went up $2.05 on Friday to close at $177.47. Rivian’s stock declined $0.11 to close at $11.49.

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