Ford, GM, And Stellantis Paid Billions To Tesla And Rivian Until Trump Pulled The Plug

- Ford, GM, and Stellantis stand to save billions under Trump’s emissions rollback.
- On the other hand, Tesla could lose more than $1 billion annually in credit revenue.
- EPA’s mission to protect health and the environment clashes with its current stance.
The automotive industry never stops changing, but 2025 has been unlike most as Donald Trump’s policies have changed the way automakers are doing business. The elimination of federal tax credits for electric vehicles is a major move on its own. Paired with the removal of penalties for missing fuel economy targets under CAFE regulations, the result is a playing field with entirely new rules.
The immediate winners are the combustion-heavy brands that can now focus on selling trucks and SUVs without financial punishment. On the other side, Tesla, Rivian, and other EV specialists stand to lose billions, not because demand for their cars will collapse, but because a critical source of revenue has been pulled out from under them. At the center of the storm is an Environmental Protection Agency that appears to be working against the mission printed on its own website.
Cash Flow Reversal
Since 2022, GM has spent some $3.5 billion buying regulatory credits, says Bloomberg. Ford and Stellantis have spent billions as well. That cash went to brands like Tesla and Rivian, which had plenty of credits to sell since their cars emit zero emissions. With the end of EV tax credits and CAFE fines for breaking regulations, Ford, GM and Stellantis can pour the money they would’ve spent on credits back into their own piggy bank.
Read: Millions Hate This Fuel Saving Tech So EPA Wants To Get Rid Of It
Ford CEO Jim Farley said the policy shift has the “potential to unlock a multibillion-dollar opportunity,” noting that the Blue Oval is already retooling its Oakville, Ontario, plant to build Super Duty pickups instead of EVs.

GM is also cutting back on EV production, opting to overhaul factories for gasoline-fueled models. Stellantis, meanwhile, has gone so far as to revive the thirsty Hemi V8 engine, something previously thought dead in the age of electrification. With all of these changes, death might now be coming for some EV brands.
Trouble Ahead For EV Startups
Not only does the end of tax credits make purchasing an EV less palatable for many, but it also means that brands which used to benefit from selling tax credits now need to readjust to the new reality. Smaller brands, though, might be in big trouble. For example, Slate’s trucklet looks almost pointless with a starting price near $30,000 as the EV tax credit was vital to its success.

Even larger brands like Tesla and Rivian have leaned on the pure profit they’ve gained by selling regulatory credits. That money likely won’t be coming back anytime soon and that’s because the EPA seems willing to do just about anything the Trump Administration deems reasonable.
A Mission Ignored
It states plainly that its mission is “to protect human health and the environment.” Love them or hate them, electric vehicles are probably better at that than combustion cars. In fact, the EPA itself has an entire page dedicated to debunking the myths so many like to perpetuate surrounding them.
Things like “EVs are worse for the climate than gas cars,” “EVs are unreliable,” and “EVs will collapse the power grid.” Furthermore, J.D. Power is one of many sources that indicate that when all costs are considered, EVs are cheaper to buy, maintain, and own long-term when compared to combustion cars.
No one argues that people should be forced into one type of car. Choice matters. The government shouldn’t force anyone into a specific car or truck. But supporting policies that improve human health and the environment is what the EPA literally says it’s supposed to do.
By supporting Trump’s rollback of strict fuel economy standards and regulations, the agency is doing the exact opposite of its own mission statement. It’s clearing the way for automakers to build more polluting vehicles, burn more fuel, and erase billions in total consumer savings. If the EPA won’t uphold its own mission, it seems that nobody will.
