I think I learned the answer today. I think I can understand how Tesla can essentially lose money selling cars but reach profitable probably for ten years coming while they continue to grow. Someone talk me off the cliff. Beginning next year that could be as low as a couple hundred thousand cars in Europe annually.
https://ec.europa.eu/clima/policies/tra ... roposal_en
https://www.businessinsider.com/tesla-s ... ser-2019-6
Tesla can literally sell 100% of emissions credits and the heavier the car, the more credit they can sell. And unlike ICE vehicles weight is not the primary savings for energy in an EV as weight energy is largely reclaimed when a vehicle is told to slow.
This could be billions of revenue a year. Zax tell me this is already built in to the price and they're losing $5 a share while they release more stock and take on more bonds. ND, tell me (and show me) I'm off base and ignorant. Please.
Incentive mechanism for zero- and low-emission vehicles (ZLEV)
A ZLEV is defined in the Regulation as a passenger car or a van with CO2 emissions between 0 and 50 g/km.
To incentivise the uptake of ZLEV, a crediting system is introduced from 2025 on.
The specific CO2 emission target of a manufacturer will be relaxed if its share of ZLEV registered in a given year exceeds the following benchmarks:
Cars: 15% ZLEV from 2025 on and 35% ZLEV from 2030 on
Vans: 15% ZLEV from 2025 on and 30% ZLEV from 2030 on
A one percentage point exceedance of the ZLEV benchmark will increase the manufacturer’s CO2 target (in g CO2/km) by one percent. The target relaxation is capped at maximum 5% to safeguard the environmental integrity of the Regulation.
For calculating the ZLEV share in a manufacturer’s fleet, an accounting rule applies. This gives a greater weight to ZLEV with lower CO2 emissions.
In addition, for cars only, during the period 2025 to 2030, a greater weight is given to ZLEV registered in Member States with a low ZLEV uptake in 2017, and this as long as the ZLEV share in the Member State’s fleet of newly registered cars does not exceed 5%.
Pooling, exemptions and derogations
The provisions on pooling between manufacturers are the same as under the current Regulations. Pooling between car and van manufacturers is not possible.
The exemption possibility for manufacturers registering less than 1,000 cars or vans per year, as well as the derogation possibility for “small volume” car and van manufacturers, has also been maintained.
The derogation possibility for “niche” car manufacturers, i.e. those registering between 10,000 and 300,000 cars per year, will end after the year 2028. In the years 2025 to 2028, the derogation target for those manufacturers will be 15% below the 2021 derogation target.
Flexibilities. Certain flexibilities are available for manufacturers, as follows:
Pooling—Several manufacturers may form a pool to jointly meet their CO2 emission targets.
Low volume manufacturers—Manufacturers with fewer than 10,000 new cars registered per annum may apply to the European Commission for a derogation from the specific emission targets. Several conditions apply.
Eco-innovation—Manufacturers may apply for credits for innovative CO2 reducing technologies which are not accounted for in the current test cycle—for example, energy efficient lights. The total contribution of eco-innovation credits is limited to 7 g CO2/km in each manufacturers average specific target.
Excess Emissions Premium. Manufacturers who miss their average CO2 targets are subject to penalties:
From 2012 to 2018, the penalties are €5 per vehicle for the first g/km of CO2; €15 for the second gram; €25 for the third gram; €95 from the fourth gram onwards.
From 2019, manufacturers pay €95 for each g/km exceeding the target.