Rival Automakers Are Funding Tesla Through Electric Car Credits
- Musk’s company has benefited from zero-emission mandates
- California regulator says ‘nobody’s happy’ with the system
Why Electric Cars Aren't Taking Over Yet
This article is for subscribers only.
Tesla Inc. has generated nearly $1 billion in revenue the last five years from an unlikely source: Rival automakers. The payments are part of an unpopular system in California that’s poised to proliferate elsewhere.
California requires that automakers sell electric and other non-polluting vehicles in proportion to their market share. If the manufacturers don’t sell enough of them, they have to purchase credits from competitors like Tesla to make up the difference.