Dec. 4 at 8:51 PM
President Trump announced a rollback of Biden-era CAFE fuel-economy standards, claiming it will make cars cheaper, though immediate consumer relief is unlikely. The average new car price has risen nearly 30% since COVID-19, from
$39,000 to
$50,000, now about 60% of median household income. Automakers, including Ford and Stellantis, supported the rollback, arguing prior standards were unattainable and could drive higher prices or losses.
While the move may slightly ease future car price pressures, it won’t immediately reduce costs, as manufacturers need time to adjust production plans. Efficiency requirements are also still being met, though gains are smaller, and EV buyers bear higher compliance costs. Tesla’s regulatory credit sales suggest some compliance costs per vehicle range from
$400–
$500, illustrating potential, modest savings from looser standards.
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