Tesla sells environmental credits to Honda to ease losses

Tesla has incurred some loss with their rechargeable sports cars, but has found a creative way to offset them- by selling environmental credits to Honda.

Since 2008, Tesla has generated $13.8 million from selling “zero-emission vehicle” credits required by large automakers in order to meet California”s tight emission standards. Honda, which was ranked as the most fuel-efficient carmaker serving the U.S. market, has thus far purchased credits equal to 368 vehicles, and contracted for an additional 287 credits.

The company has lost money every year selling $109,000 electric sports cars, and planned to raise at least $100 million through a planned IPO. A filing by Tesla also indicated the sale of credits to another manufacturer, though which one it is was not made known.

Under the California rules instituted in 2008, Toyota, GM, Ford, and Nissan must combine to sell over 60,000 plug-in hybrid and battery-only models in the state over a three-year period.

– By: Stephen Calogera

Source: Bloomberg