May 30, 2018

Tesla, Huge Utilities Demand Corporate Welfare from Federal Court

Post by Freedom Partners

Should the federal government really be in the business of making cars more expensive? That’s the crux of a lawsuit intended to stop President Trump’s regulatory relief agenda.

Despite a reputation for driving innovation, Tesla – famous for its pricey luxury plug-in car – has found itself on the wrong side of the road towards a more competitive, more affordable automobile market. Banding together with a coalition of utility groups in hot pursuit corporate welfare, Tesla has filed a lawsuit against the Trump administration for the Environmental Protection Agency’s (EPA) recently announced adoption of more appropriate fuel economy standards that will produce more affordable cars for consumers.

Axios reports:

“Companies looking to profit off electric cars are suing President Trump for proposing to roll back fuel-efficiency regulations.


“A strange bedfellows group formed last year by utilities and Tesla filed suit in the D.C. Circuit earlier this month against the Environmental Protection Agency’s move to roll back fuel-efficiency standards.

“Rising fuel-efficiency standards would increase demand for electric cars, which would spur electricity demand, a top priority for utilities that are facing largely stagnant electricity demand from buildings.”

Let’s be clear: This is a cynical ploy by some huge companies to drive up demand for their own products via the power of the federal government backing. Tesla and its allies’ pushback on free market policies will only lead to higher costs and fewer choices for consumers.

It’s worth noting that some of these alternative power vehicles are already heavily subsidized by the federal government. Apparently, that’s not enough. Now they want to further limit choices, limit competition and drive up auto costs.

Consumers, particularly those on fixed incomes, should be free to choose the type of vehicle at a price point that works best for them. That’s how markets should work. Instead Tesla and major utility companies want special government intervention to prop up pet industries and higher car payments and electric bills for consumers.

Hopefully, the court gives this lawsuit the quick dismissal it deserves.