Tesla privately warned UK government against weakening EV rules

Tesla told the UK government that loosening rules intended to boost electric vehicle (EV) sales would hit the battery car market and jeopardize the country’s carbon reduction targets.

The warning was made in a submission to a government consultation, recently obtained by The Fast Charge newsletter under Freedom of Information laws.

The US carmaker, run by Elon Musk, argued that introducing new loopholes, or “flexibilities,” into the Zero-Emission Vehicle (ZEV) mandate was “essential” to avoid.

Tesla stated these changes “will suppress battery electric vehicle (BEV) supply… and risk the UK missing its carbon budgets.”

The ZEV mandate compels carmakers to ensure a rising percentage of their annual sales are electric. The Labour government had already worried some EV makers in April by introducing loopholes allowing manufacturers to sell more polluting petrol and diesel cars.

Tesla’s stance contrasts sharply with that of some carmakers with UK factories, including BMW and Nissan, who claimed the mandate was damaging investment by forcing them to sell EVs at a loss.

Adding further complexity, Chancellor Rachel Reeves announced in the recent budget the imposition of a “pay-per-mile” charge on EVs starting in 2028, which critics say could undermine demand despite welcomed extensions of new car grants. As one industry expert noted, the budget is “effectively robbing Peter to pay Paul” in the EV transition.

In its heavily redacted submission, Tesla also called for government “support for the used-car market,” though it declined to clarify whether that support should include grants.

Other foreign manufacturers took different positions. Ford and Mercedes-Benz lobbied against more stringent emissions rules post-2030, while Mercedes-Benz pushed for a reduction of VAT on public charging.