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Tesla's ZEV credit allotment changing under new CARB rules

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.

Governor Rick Perry backs bid for Tesla Stores in Texas

It's funny how the prospect of a $5-billion investment in a state has the ability to focus minds. Take Texas, for example. The Lone Star State has long had laws prohibiting automakers from selling directly to consumers, even if the manufacturer didn't already sell through franchise dealerships. Last year, a bill went to the legislature that would have allowed Tesla Motors to sell directly to its customers, but despite entreaties and a visit from CEO Elon Musk, lawmakers didn't pass it. Sure, Texans can still buy the a Model S, but the process is a bit cumbersome. With the prospect of an expensive battery gigafactory and the jobs it would bring, however, Texas Governor Rick Perry taken to the airwaves cable news outlet Fox Business to make his supportive position known. To be fair, the one-time Republican Presidential hopeful has been in favor of Tesla's sales model for some time. The difference now is he is being proactively vocal about it. Appearing on Opening Bell with Maria Bartiromo, Perry spent close to eight minutes pitching a new approach to dealership laws in his state, at one point referring to the traditional dealer model as "antiquated" and encouraging legislators to have an "open and thoughtful" conversation and decide whether or not they want to lead the country when it comes to manufacturing. If you think that he has become warm and fuzzy about environmental issues, Perry reminds us after a brief discussion on 2014 and 2016 elections – yes, he may run again – that he has no qualms about continuing to rely on fossil fuels, stating that he thinks the most important thing the federal government can do to impact the economy right now is to "say yes" to the Keystone XL pipeline. You can view the segment in its entirety be simply scrolling below.

Tesla Gigafactory coming to Reno, Nevada with $1.2 billion in tax incentives

You want details on the Gigafactory? You got 'em. At least the preliminary ones. At an event with Nevada Governor Brian Sandoval this afternoon, Tesla Motors announced that its first Gigafactory will be built outside Reno. As was leaked yesterday and confirmed by unnamed state officials today, the plant will be where Tesla will make a big statement not only about EVs but also the power of Nevada to further that particular fight. The incentive package is worth $1.2 billion over 20 years. Tesla CEO Elon Musk, speaking in Carson City, said that Nevada did not offer the biggest incentive package, but that, "This is not just about the incentives. [Nevada is a] really get things done state. That was a really important part of the decision," according to the Reno Gazette-Journal. That said, the incentive package is still more than twice what Musk originally said would be needed. The state worked out a deal with the automaker that will be wordh $1.2 billion over 20 years and should basically let Tesla operate tax-free for ten years, the RGJ reports. That will not surprise some people. The RGJ breaks down the numbers this way: $725 million for a 20-year 100 percent sales tax abatement $332 million for a 10-year 100 percent property tax abatement $120 million in transferable tax credits $75 million in transferable tax credits worth $12,500 per job times 6,000 jobs). $27 million for a 10-year, 100 percent modified business tax abatement $8 million in discounted electricity rates for eight years The Gigafactory is Tesla's answer to the question of how it will be able to make a $35,000 EV that will be able to over 200 miles on a charge. Tesla CEO Elon Musk has said that a 30-percent decrease in cost for the batteries is "probably conservative at this point." The Reno Gigafactory could be in operation by late 2016. Tesla is partnering with Panasonic on the plant. The governor thanked Senator Harry Reid, who he said played an important role. Whether the Reno announcement is the first of many remains to be seen. For now, the other states that wanted the plant, like California and Arizona, remain hopeful. Tesla's official statement and a short local news report on yesterday's rumors are available below. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.