I could see state regulations, for sake of pollution mitigation, that cars modified in this manner are not allowed to run outside of race courses. There’s a reason our air does not look like Beijing’s even though a glorious smoky burnout is a sight to see in judicious circumstances and what would any redneck be without at least one on his lane.
HOWEVER, this sounds like overreach, of dubious legality, but with Obama’s wild EO writing, America has lost a sense of the “deal” that was its constitution.
This is the current law. You can modify a new car all you want and take it "off-road." However, you must return it to street-legal, emissions-compliant mode before driving it "on-road" again. Note, most states define "on-road" or "highway" as any publically-built/maintained road (including dirt roads). Off-road is usually private property and designated recreational areas.