Trump Strikes Down California’s EV Standards: A Bold Rebuke to Green Policy and Elon Musk

In a sweeping political and environmental move, former President Donald Trump officially repealed California’s landmark electric vehicle (EV) mandates, signaling a dramatic shift in the nation's climate strategy and reigniting his personal feud with two longtime adversaries: the state of California and Tesla CEO Elon Musk.

President Donald Trump

This decision, made through the Congressional Review Act, undoes multiple climate-focused waivers that allowed California to set stricter pollution and EV sales standards than the federal government—standards that many other states had also adopted.

A Political Power Play Disguised as Consumer Protection

Trump’s announcement coincided with a fiery press conference, where he declared that his actions would “free Americans from California’s authoritarianism” and “protect working-class Americans from liberal elites and overreaching billionaires.” His administration claims the rollback is aimed at protecting consumer choice and lowering costs in the auto industry.

“California doesn’t get to dictate how the rest of the country drives,” Trump said. “And billionaires like Elon Musk don’t get to write our energy policy.”

Trump’s administration argued that EV mandates—requiring 80% of new cars sold in California to be electric or hybrid by 2035—would increase vehicle prices and put undue pressure on U.S. auto manufacturers, especially those already facing economic headwinds.

California Fights Back: Legal Challenges Ahead

The backlash from California was immediate. Governor Gavin Newsom called Trump’s action “a direct attack on our future” and announced a multi-state lawsuit challenging the rollback.

“These aren’t just vehicle standards,” Newsom said. “They’re a commitment to public health, to clean air, and to a future where America leads the world in clean energy innovation.”

California was joined by 10 other states, including New York, Oregon, and Washington, all of which had signed onto similar EV mandates. The lawsuit hinges on whether federal lawmakers have the right to retroactively nullify EPA waivers granted under the Clean Air Act.

Elon Musk: From Beneficiary to Bullseye

While Tesla and its CEO Elon Musk have long benefited from government EV incentives and credit schemes, Musk now finds himself caught in the political crossfire. Trump took personal aim at Musk during the announcement, calling him “a billionaire who thinks he’s above accountability.”

Ironically, Tesla could stand to gain financially from looser regulations, which would reduce competition from traditional automakers struggling to catch up in the EV race. However, the move also threatens Tesla’s environmental image and its ecosystem of zero-emission credit trading—once worth billions annually.

Musk’s response was muted. He posted a brief comment on X (formerly Twitter):

“Regardless of politics, sustainable transport is still essential for our planet. Tesla will keep building the future.”

Analysts believe that while Tesla can weather the political storm, its leadership in the EV narrative may be undermined as the U.S. softens its regulatory push toward electrification.

Environmental, Economic, and Global Impacts

The consequences of dismantling California’s EV standards stretch far beyond state lines:

• Environmentalists warn the rollback could delay America’s climate targets, especially with the transportation sector accounting for nearly 30% of U.S. emissions.

• Economists argue the policy shift injects uncertainty into a growing EV market, potentially slowing domestic investment and innovation.

• Globally, the move may harm U.S. credibility on clean energy, especially as Europe and China double down on aggressive EV and emissions goals.

Strategic Timing and Electoral Undertones

Trump’s repeal arrives amid a re-election campaign that has embraced “America First” rhetoric and leaned heavily into populist messaging. His decision to strike down policies from a liberal stronghold like California plays well with rural and blue-collar voters skeptical of climate mandates.

It’s also an effort to further distinguish his energy policies from those of the Biden administration, which championed EV incentives through the Inflation Reduction Act.

What Comes Next?

Legal experts predict the lawsuits from California and allied states could reach the Supreme Court, setting a precedent for how much autonomy states have in shaping environmental standards.

Meanwhile, companies like Tesla, Ford, and GM must navigate a murky regulatory environment, where federal and state rules are diverging and politicized.

Whether or not Trump’s decision survives legal scrutiny, one thing is clear: the fight over America’s EV future is now a central political battleground—with California, Elon Musk, and Donald Trump all unwilling to back down.