Washington and other states have adopted California regulations requiring increased sales of zero-emissions vehicles over time and they use of EV credits to meet the targets. Automakers need to hit a set percentage of EV deliveries for sale each year — or if they fall below that number, they can purchase EV credits earned by other manufacturers.

Washington Democrats in the Legislature are mulling a tax aimed primarily at Tesla amid national protests against the DOGE-leading billionaire.

Tesla’s flailing sales figures have put the company closer to the red than it has been in years, according to financial results released Tuesday,