Nissan to Start Selling California ZEV Credits, Joining Tesla

Tesla recently released financial figures that the company says demonstrate profitability. Some analysts have pointed out that some of Tesla's revenue comes not from selling cars but rather by selling zero-emission credits to other car companies that want to do business under California's clean-air regulations. If they want to sell cars in California, companies have to comply by either producing ZEVs or by obtaining credits from companies that make those vehicles. Now Nissan Motor Co, whose Leaf is the best selling electric car of all time, has joined Tesla in selling those credits. Tesla was able to sell those credits because they only make electric vehicles. Makers of conventional cars and trucks buy the credits to theoretically offset the pollution caused by those cars. Since Tesla has no such conventionally polluting cars to offset, they can sell their credits. Nissan executive VP Andy Palmer told reporters earlier this week that at this point Nissan has sold enough Leafs to cover its own needs to comply with the California Air Resources Board's rules and will now start selling surplus credits to other automakers. "We've got carbon credits to sell, and we're selling them — California ZEV credits." No details were forthcoming on time, price or to whom Nissan will sell their credits. In the first half of 2013, Tesla brought in $119 million, or 12 percent of its revenue, from ZEV credit sales. Each Tesla Model S accrues as many as seven ZEV credits for the EV startup. Each Leaf sold in California and the other states that participate in CARB's program, earns 3 credits. CARB has no say in how much a company can charge for the credits and their customers do not have to be disclosed. "While Nissan has been approached by other automakers regarding emission-credit transactions, these discussions and the outcome of any transactions is held in strict confidence by all involved parties," David Reuter, a spokesman Nissan, said. Since the end of 2010 when it went on sale, Nissan has sold about 75,000 leafs around the world, with California being one of its biggest markets, and it expects to sell at least 20,000 in the U.S. this year, about double what it sold in 2012. from The Truth About Cars http://www.thetruthaboutcars.com

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