President Trump has approved new fuel economy standards that replace the Biden administration's stricter rules. The new NHTSA proposal targets a fleetwide average of 34.5 miles per gallon by 2031, down from the 50.4 mpg goal set under Biden. This shift rolls back the push for electric vehicles, which Biden wanted to make up half of new car sales by 2030. The change is projected to increase carbon dioxide emissions by 5% and add 100 billion gallons of fuel consumption through 2050, according to Reuters. While the administration claims lower vehicle prices and savings of $930 per car, these gains come with higher long-term fuel costs and a significant climate impact. Automakers like Ford, GM, and Stellantis saw stock gains on the news, while Tesla slipped.
