Tesla Dominates Sales of CA Green-Car Credits

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Oct. 18 (Bloomberg) -- Bloomberg's Jamie Butters reports on the zero-emission vehicle credit market on Bloomberg Television's "In The Loop." (Source: Bloomberg)

With supercars.

His company has been selling california's zero emission vehicle credits, 32 times more than suzuki, which was the second largest seller of the credit.

For more on the eco-credit market, auto editor jamie butters joins us now.

How do these credits were?

Unlike the submarine cards, these credits are really important to elon musk's business.

As you know, tesla would not have been profitable if he was not selling these credits.

So, california has this system.

They have a lot of smog and clean air problems.

They want people to drive electric cars and other cars that don't emit any exhaust, any nitrous oxide.

So, tesla, nissan, toyota, all these companies, they sell cars of varying levels of green and they get credit for them.

Must get the most credits.

Tesla's model as it gets the maximum seven credits per car.

Because they have a huge range -- in theory, you can swap out the battery.

For elon musk, because they are so small, they don't need to keep any of these credits for the sale -- themselves.

Toyota needs a lot, honda needs a lot, gm needs less than that and so on down the line.

Everyone he gets, they sell, they need the money.

It is a great source of revenue.

One of the secrets of their business model.

And one of the reasons why some of -- they have the bears they do against their stock because some say the profits you see from tesla are being "artificially pumped up" because of the sale of the credits.

Who buys these credits?

I get what they are saying, especially because tesla has warned the income from the credits will decline over time.

But it is a real part of their business.

They are getting real money.

The buyers so far have been chrysler, honda, and gm have been the biggest.

Because they are all pretty big layers in the marketplace, that they don't sell a lot of electric cars.

Honda has some hybrids, it has a fuel car that sold an extremely low numbers and they have a huge market there and tell of -- share and california, so they have to be a big buyer.

We don't know specifically if they are buying from tesla but at the numbers they are buying there is a pretty good chance of it.

What about toyota and their credits?

Toyota is kind of a funky case because they are the dominant player in the california market.

In the previous prius sells in huge numbers.

The yield in, because it is so big, they need a huge amount of credits and to generate some.

There is a separate class of them.

The zero emission vehicle credits for electric cars like the nissan leaf and the model asked, but toyota sold many prius' that they have so many credit -- priuses, they have hybrid credits.

They are the only company that gave away credits for the hybrid cars and gm is the one that got them.

But they told that they have not bought or sold any credits.

Purely they may be bartered or traded some credits with gm.

They gave gm some credits in the last year and got something else in return that was not money.

Tank you for joining us.

Jamie butters, bloomberg news auto energy or -- auto editor

This text has been automatically generated. It may not be 100% accurate.


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