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Blog Tesla Selling Regulatory Credits to GM, Fiat Chrysler

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A new filing first reported by Bloomberg shows that Tesla has been selling federal greenhouse gas credits to General Motors and Fiat-Chrysler to help them comply with increasingly strict environmental regulations.

Bloomberg reported: “Tesla has generated almost $2 billion in revenue from selling regulatory credits since 2010. Its home state of California has a mandate that requires carmakers to sell zero-emission vehicles, or ZEVs, in proportion to their share of the state’s auto market, which is the largest in the country.

If manufacturers don’t sell enough non-polluting vehicles, they have to purchase credits from competitors like Tesla to make up the difference. A similar credit system is administered at the federal level by the EPA and National Highway Traffic Safety Administration.”

Bloomberg said the filings were “light on detail,” but “represent the first acknowledgments from carmakers that they’re turning to Tesla for help to comply with intensifying U.S. environmental regulations.”

Tesla could potentially cash in on similar regulatory credit sales in Europe. It’s surely a welcomed source of revenue to be able to take money from competing manufacturers.

 
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