Tesla has generated almost $1bn in revenue over five years from rival car makers due to a system in California that requires car makers to sell electric and other non-polluting vehicles in proportion to their market share. If manufacturers fail to sell enough they are required by law to purchase credits elsewhere – from competitors such as Tesla that sells only battery-powered models. The Californian legislation is the first of its kind anywhere in the world. China and the European Union are considering adopting a credit system similar to California’s.
Tesla has generated almost $1bn in revenue over five years from rival car makers due to a system in California that requires car makers to sell electric and other non-polluting vehicles in proportion to their market share. If manufacturers fail to sell enough they are required by law to purchase credits elsewhere – from competitors such as Tesla that sells only battery-powered models. Tesla sold $302.3m in regulatory credits last year alone and dominates the electric vehicle industry. China and the European Union are considering adopting a credit system similar to California’s.