Elon Musk's Tesla issued a stark private warning to the UK government that any move to weaken electric vehicle (EV) regulations would damage battery car sales and jeopardise the country's legally binding carbon dioxide targets, newly released documents show.
Private Lobbying Reveals Industry Split
The US electric carmaker's submission to a government consultation earlier this year, obtained by the Fast Charge newsletter, argued it was "essential" that ministers did not introduce new loopholes, or "flexibilities," into the zero-emission vehicle (ZEV) mandate. Tesla stated that such changes "will suppress battery electric vehicle (BEV) supply, carry a significant emissions impact and risk the UK missing its carbon budgets."
This warning came in April when the new Labour government, worrying some manufacturers, softened the ZEV mandate rules. The mandate legally requires carmakers to sell an increasing proportion of EVs each year, but the revised rules allowed them to sell more petrol and diesel models.
Carmakers Clash Over Policy Direction
The documents reveal a deep split within the automotive industry. While Tesla and other EV-focused brands defended the strict rules, several major manufacturers with UK factories – including BMW, Jaguar Land Rover, Nissan, and Toyota – argued the mandate was harming investment because they were selling electric cars at a loss.
In its submission, Tesla also called for "support for the used-car market," though the company declined to comment on whether this should include financial grants. The carmaker further advocated for a ban on sales of plug-in hybrid vehicles with a battery-only range of less than 100 miles after 2030, a move that would exclude many popular models.
In contrast, rivals Ford and Mercedes-Benz lobbied against more stringent post-2030 rules that would force deeper cuts to average CO2 emissions. Ford criticised European governments for pulling support, stating that "policymakers in many European jurisdictions have not delivered their side of the deal," and highlighted the competitive threat from lower-cost Chinese manufacturers.
Budget Announcements Create Further Uncertainty
The political and economic landscape for EVs became more complex following Chancellor Rachel Reeves's autumn budget. While extending grants for new electric cars was welcomed, the promised introduction of a "pay-per-mile" road charging scheme for EVs from 2028 alarmed the industry, potentially making them less attractive compared to traditional vehicles.
Tom Riley, author of Fast Charge, noted the contradictory signals: "Just as the EV transition looked settled, the budget pulled it in two directions at once – effectively robbing Peter to pay Paul. If carmakers push again for a softer mandate, Labour only has itself to blame when climate targets slip."
The documents, which Tesla, Mercedes-Benz, and Ford objected to releasing, were only obtained after a Freedom of Information appeal, with several pages heavily redacted. No carmakers are believed to have faced fines for missing 2024 sales targets under the mandate.
