Tesla's Environmental Credits Business Eases Losses Amid Rechargeable Sports Car Struggles

Tesla Motors Inc.'s less glamorous business of selling environmental credits to automakers has helped ease the financial burden of its rechargeable sports cars, which have failed to turn a profit. The company revealed in a recent filing that it generated $13.8 million since 2008 from selling zero-emission vehicle credits to meet California's strict pollution rules. Honda Motor Co. was the largest buyer of these credits, purchasing credits equal to 368 cars and contracting for an additional 287. Meanwhile, Tesla has sold about 1,000 electric Roadsters to film stars, musicians, and battery-car advocates since 2008.

Key Takeaways:

• Tesla has generated $13.8 million from selling environmental credits since 2008 to meet California's strict pollution rules.
• Honda Motor Co. was the largest buyer of these credits, purchasing credits equal to 368 cars and contracting for an additional 287.
• Tesla has sold about 1,000 electric Roadsters to film stars, musicians, and battery-car advocates since 2008, but its rechargeable sports cars have not turned a profit.
• Chief Executive Officer Elon Musk aims to build $57,000 Model S sedans at a former Toyota joint-venture factory in 2012.
• Tesla has lost money every year since its founding in 2003 and is planning an initial public offering that may raise at least $100 million.
• The company's environmental credits business provides some flexibility for the future, according to Robert Bienenfeld, Honda's U.S. senior manager for environment and energy strategy.

Statistics:

• Tesla generated $13.8 million from selling environmental credits since 2008.
• Honda purchased credits equal to 368 cars and contracted for an additional 287 credits.
• Tesla has sold about 1,000 electric Roadsters to film stars, musicians, and battery-car advocates since 2008.
• 368 cars' worth of credits were purchased by Honda in 2008-2012.
• 287 additional credits were contracted by Honda, but the exact timeframe is not specified.

Sources:

• "Tesla Motors' filing for planned initial public offering" (no date mentioned)
• Euclid Infotech Pvt. Ltd.