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. “It really makes them mad that Tesla got so much of a boost out of being the only purely electric car manufacturer out there,” Mary Nichols, the chair of the California Air Resources Board, said in an interview Friday at Bloomberg’s headquarters in New York. 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. 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.