The US government has officially ended the emission credit market, causing billions of dollars in revenue to disappear from electric vehicle (EV) automakers. The change is a result of the Trump administration’s ‘Big Beautiful Bill’, which removes the federal tax credit for EV purchases on September 30th.
Another significant change is the end of penalty enforcement for automakers with lower average fuel economy, meaning those that produce more gas-guzzling vehicles and fewer electric vehicles. This has already been implemented and eliminates the market for credits under the Corporate Average Fuel Economy (CAFE) standard.
As a result, many automakers had deals to purchase credits, but now face uncertainty about whether those deals will continue. The Zero Emission Transportation Association (ZETA) has filed a petition in the US Court of Appeals to force the National Highway Traffic Safety Administration (NHTSA) to resume issuing compliance letters.
Rivian’s director of public policy stated that the company lost $100 million in revenue due to the NHTSA’s decision, and now expects no CAFE credit revenue this year. Tesla, which heavily relies on US regulatory credits for its income, is particularly affected, with estimated losses from US sales ranging from half to all of its global revenue.
The change has sparked debate about the impact on the EV sector, with some arguing that it will slow down adoption in the US. Others believe that automakers should prioritize delivering the best product possible, despite policy uncertainty. The US’s failure to keep pace with global EV adoption is seen as a significant issue by many experts.
Source: https://electrek.co/2025/08/15/tesla-rivian-others-see-billions-in-revenue-disappear-us-end-emission-credits