Tesla, Nissan Take Financial Hits as States Remove EV Subsidies

It’s been six years since electric vehicle manufacturers enjoyed their windfall from U.S. taxpayers via the stimulus, but the thirst for subsidies, and pain from financial losses, have not waned. The pursuit of government goodies continues apace for Tesla Motors, even more vigorously after the Los Angeles Times reported last month that CEO Elon Musk depends on more than $4.9 billion in corporate welfare for his companies, which also include SolarCity and SpaceX. Tesla’s quest may more accurately be portrayed as preservation of the golden goose that is California’s zero-emission vehicle (ZEV) credit scheme. The Golden State requires the six largest auto manufacturers to produce a certain percentage of vehicles that are “green” – in other words, electric – or to purchase zero-emission “credits” from companies that do, such as Tesla. According to the Christian Science Monitor, Tesla is the largest seller of ZEV credits, raking in $152 million from those sales last year (and many more prior). But the parameters of the policy are about to change...more