2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S front 3/4 view

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S rear 3/4 view

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S front 3/4 view

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S rear 3/4 view

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S side view

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S front view

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S rear view

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S front 3/4 view

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S rear 3/4 view

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S headlight

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S logo

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S wheel

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S side marker

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S door handle

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S brake light

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S taillight

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S logo

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S logo

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S badge

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S badge

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S front cargo area

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S rear cargo area

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S interior

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S interior

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S interior

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S steering wheel

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S front seats

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S front seats

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S rear seats

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S digital display

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S digital display

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S steering wheel

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S steering wheel controls

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S steering wheel controls

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S dash

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S emergency button

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S center arm rest

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S touch screen

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S touch screen

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S touch screen

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S touch screen

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S touch screen

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S touch screen

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S touch screen

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S touch screen

2012 Tesla Model S
  • 2012 Tesla Model S
  • 2012 Tesla Model S VIN display

Could the California Air Resources Board (CARB) be taking a $55-million bite out of Tesla Motors' profits? The state regulator, which grants zero-emission vehicle (ZEV) credits for automakers making plug-in vehicles, is planning to reduce the number of credits generated by each Model S battery-electric sedan from seven to four, Bloomberg News reports. That means the California-based automaker will have fewer credits to sell to big buyers such as General Motors and Chrysler, who don't make enough ZEVs on their own to comply with state mandates.

While the selling price for these credits isn't disclosed (they're private transactions), the market was a lucrative one for Tesla, which generated $129.8 million in revenue from California zero-emissions credit sales and about another $65 million selling US Corporate Average Fuel Economy (CAFE) credits last year. All told, California and federal zero-emissions credit sales accounted for about 10 percent of Tesla's sales last year. A Tesla representative didn't immediately respond to a request from AutoblogGreen for comment.

This issue first came up last year when CARB hinted that it wouldn't give Tesla credit for having a battery-swapping option as it's method for quick-fueling compliance. Tesla, which appears to have been preparing for just this scenario, has been collecting revenue on credits since 2010 and achieved its first-ever profitable quarter in the first quarter of 2013 because of such credits.

While the maximum number of zero-emissions credits a vehicle could garner was increased from seven to nine in the new rules, Tesla can't take advantage of that because it meets neither of the most stringent criteria: that the car in question is rated to go more than 300 miles on a full tank or battery and be able to be "filled up" (or fully charged, in this case) within 15 minutes. Those are more hydrogen fuel-cell-like targets, but Tesla has the EVs that come closest to meeting them.

Help us improve our comments.
Share This Photo X