Tesla Leads Sellers of CARB ZEV Credits, Chrysler Biggest Buyer

TTAC Staff
by TTAC Staff
tesla leads sellers of carb zev credits chrysler biggest buyer

According to data released by the California Air Resources Board, CARB, Tesla Motors was the top seller of the zero-emission vehicle credits that regulatory board requires car makers to have if they want to sell cars in that state. Toyota was the top seller of hybrid-car credits.

Tesla sold 1,311.52 ZEV credits from Oct. 1, 2012, through Sept. 30 this year. Suzuki Motor Corp., the next biggest seller, transferred about 41 credits. Though Suzuki no longer sells cars in the United States, they still have credits accumulated from prior sales. Toyota transferred 507.5 plug in zero emission vehicle credits generated by its Prius hybrid. General Motors Co. acquired the same number as Toyota sold, so presumably GM bought them from its Japanese rival.

Buyers of CARB ZEV credits.

Automakers, if they want to sell cars and light trucks in California, must sell EVs or other zero emissions vehicles in proportion to their market share in the state. The goal is to have a million and a half ZEVs on California roads by the year 2025. If companies generate more credits than their sales require, CARB allows those credits to be sold. Each Tesla Model S earns the company as many as 7 ZEV credits, the maximum issued by California.

Companies listed by CARB as buying ZEV credits over the past 12 months were Chrysler Group LLC, GM; Honda Motor Co.; Jaguar Land Rover; Fuji Heavy Industries Ltd.’s Subaru; and Volkswagen AG. CARB does not keep track of specific trades or prices, saying the goal is for all automakers covered under California law are compliant.

Some indication of the pricing can be found in company financial reports. Tesla reported that 12% of it’s revenue in the first six months of 2013 came from ZEV credit sales amounting to $119 million. Tesla CEO Elon Musk said that the company’s ZEV credit sales will decline in the second half of the year.

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  • 28-Cars-Later 28-Cars-Later on Oct 18, 2013

    I still say the whole idea of selling these "credits" is total fraud. If they put a quota on automaker sales unless they sold X amount of low pollution vehicles I may disagree with but it would force everyone to develop of license PZEV or ZEV tech. Using this method I could flood Cali with 12mpg high smog wonders and if my margin was high enough transfer a percentage of profit to someone with a golf cart division (i.e. GEM).

    • See 5 previous
    • Pch101 Pch101 on Oct 19, 2013

      @Luke42 "a carbon tax would be more fair and more market-based." This is quite similar to a carbon tax. A company that doesn't build enough EVs has to pay someone else who produces more than what is necessary. The idea of a carbon tax is that the regulators will establish a tolerable level of pollution and then allow the market to sort out how that target is met. California's approach to EVs is virtually the same. (Personally, I think that the state's approach to EVs is misguided. But the trading mechanism itself isn't the problem.)

  • Zip89123 Zip89123 on Oct 19, 2013

    Carb credits, from the same morons that poisoned our water with MTBE, that would rather see a forest burn than log it (like that wouldn't pollute the air!@&*(),won't build any new freeways, environmentally sends manufacturing jobs elsewhere due to inane laws, and while I could go on and on, it was just easier to move out of state to freedom.

    • Thelaine Thelaine on Oct 19, 2013

      +1 canddmeyer. Congrats on your escape. Now you can laugh at the latest brilliant scheme from the Sacramento Utopians. It's always easier to build your Neverland using other people's money. They won't stop trying to perfect that state until they have destroyed it. Enjoy your windfall, Elon.

  • Lorenzo In Massachusetts, they used to require an inspection every 6 months, checking your brake lights, turn signals, horn, and headlight alignment, for two bucks.Now I get an "inspection" every two years in California, and all they check is the smog. MAYBE they notice the tire tread, squeaky brakes, or steering when they drive it into the bay, but all they check is the smog equipment and tailpipe emissions.For all they would know, the headlights, horn, and turn signals might not work, and the car has a "speed wobble" at 45 mph. AFAIK, they don't even check EVs.
  • Not Tire shop mechanic tugging on my wheel after I complained of grinding noise didn’t catch that the ball joint was failing. Subsequently failed to prevent the catastrophic failure of the ball joint and separation of the steering knuckle from the car! I’ve never lived in a state that required annual inspection, but can’t say that having the requirement has any bearing on improving safety given my experience with mechanics…
  • Mike978 Wow 700 days even with the recent car shortages.
  • Lorenzo The other automakers are putting silly horsepower into the few RWD vehicles they have, just as Stellantis is about to kill off the most appropriate vehicles for that much horsepower. Somehow, I get the impression the OTHER Carlos, Tavares, not Ghosn, doesn't have a firm grasp of the American market.
  • UncleAL ...Oh, did I forget ? My Dodge Challenger gets 50% more gas mileage and 200% more fun !