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Storm clouds for the electric vehicle market: EPA & Tesla

A Tesla dealership
A Tesla Motors dealership at night. Photo: Smith Collection/Gado/Getty Images

Two storylines are converging that could bring headwinds for the growth of U.S. electric vehicles: EPA's regulatory rollbacks and Tesla's rough patch. But whether they're ultimately strong gusts or merely light breezes is hard to know yet.

Why it matters: Environmentalists fear the EPA efforts could slow the transition to a cleaner vehicle mix at a time when carbon emissions from the transportation sector have become the top source of U.S. carbon dioxide output. This comes as Tesla is set to release data showing how short it's falling on producing the mass market Model 3 electric sedan, a car that could be important to the wider expansion of EVs on U.S. roads.