Related tickers: Tesla Motors Inc (NASDAQ:TSLA), Westport Innovations Inc. (USA) (NASDAQ:WPRT)
With the recent EPA proposal to tighten gasoline standards, several oil companies are crying foul. The American Petroleum Institute estimates that complying with these new regulations could cost the entire industry $10 billion upfront with an additional $2.4 billion each year to comply. This isn’t all bad news, though.
Fool.com contributor Tyler Crowe takes a look at this proposed regulation, and he sees some opportunities that could arise from this new standard. As gasoline becomes cleaner, it will also improve engine quality and help to increase the miles per gallon rates on gasoline vehicles, so it could take some pressure off of automotive manufacturers when meeting new MPG standards. Also, the anticipated increase in a gallon of gas resulting from this regulation could also play well into the hands of Tesla Motors Inc (NASDAQ:TSLA) and Westport Innovations Inc. (USA) (NASDAQ:WPRT), whose alternative transportation fuel options become more attractive as gasoline becomes more expensive.
Fool contributor Aimee Duffy owns shares of Ford. Fool contributor Tyler Crowe owns shares of Westport Innovations. The Motley Fool recommends Ford, Tesla Motors, and Westport Innovations. The Motley Fool owns shares of Ford, Tesla Motors, and Westport Innovations.