As the feud deepens, carmakers are expected to turn even more sharply toward Musk’s Tesla as they race to meet the U.K.’s ambitious net-zero climate targets.
As one of Britain’s key green policies, the zero emission vehicle (ZEV) mandate forces carmakers to transition away from petrol and diesel vehicles faster than in any European Union country.
And pure electric vehicle carmakers like Musk’s Tesla can help them handle fines for missing targets under the mandate. Under the U.K. system, carmakers who don’t make the shift must pay fines of £15,000 per combustion car sold to make up the difference, borrow from their future production — or buy credits at a cheaper price from competitors.
Automakers owe £1.8 billion in fines from 2024, according to analysis by the Society of Motor Manufacturers and Traders. The Department for Transport insisted it “does not recognize” that figure. The U.K.’s market share for EVs reached a record 19.6 percent last year, but the industry collectively missed its 22 percent ZEV mandate sales target.
Carmakers who miss ZEV targets will need to approach “not only the Chinese manufacturers, [but] also Tesla” to buy carbon credits to help them avoid fines, said one of the two senior automotive figures, granted anonymity to speak freely.
That Starmer’s Labour government is helping enrich Musk is “a reminder of the overlap of the political and business worlds that will be intensified under President Trump,” said David Henig, director of the U.K. trade policy project at the European Centre for International Political Economy.
