Overview

• President Donald Trump signed congressional resolutions on June 12 to halt California’s planned ban on new internal combustion vehicles starting in 2035.
• California Attorney General Rob Bonta immediately filed suit, calling the action illegal and warning it threatens public health and the state economy.
• The clash underscores California’s decades-old waiver allowing stricter emissions rules than federal standards.
• Tesla could see a drop in revenue after losing access to the state’s lucrative market for selling zero-emission credits.
• The dispute dovetails with Trump’s recent order to deploy National Guard troops in Los Angeles over Governor Gavin Newsom’s objections.