Tesla (TSLA) is set to make its case to U.S. regulators this week for tougher fuel economy standards. The move could be a roadblock to other automakers looking to ease mileage and emissions regulations. California has particularly ambitious targets, which pose a challenge for Tesla’s truck and sports car making rivals such as General Motors and Toyota. The current fuel economy targets want vehicles to average 54.5 miles per gallon by 2025 and provide an incentive for companies to invest in electric or energy efficient vehicles. Tesla is keen to see incentives for companies working to put energy efficient products on the road, according to a report from The Wall Street journal. Competitors are increasingly taking advantage of lower gas prices to push high profit margin vehicles like pick up trucks and SUVs. CEO Elon Musk on the other hand, has estimated that Tesla will not be in the green profit wise, until around 2020. Efraim Levy, Senior Analyst at S&P Capital IQ told TheStreet: ‘I don’t think regulatory change is what drives the business for Tesla. Their main need is to create the demand and have the availability of the product at a mass level to the consumers over the next few years to complete their business model whether or not fuel efficiency is a few miles per gallon higher or not, that’s not going to make the difference.’ Tesla will make its presentation at an industry conference in Michigan on Tuesday.
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