Tesla Sells Electric Car Credits to Honda

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The Honda Motor Corporation has helped upstart Tesla Motors Inc in the financial department, as the Japanese automaker has bought environmental credits from Tesla. Not the most glamorous way to turn a profit.

In 2008, Tesla generated $13.8 million from selling low emission vehicle credits needed by larger automakers to help with California’s wacky pollution rules, the company said to Business Week. Honda was the only named customer, as it bought 368 cars and contracted an additional 287 cars, according to the filing.

Tesla has sold around 1,000 electric cars, at $109,000 each, mostly to film stars and environmentalists. CEO Elon Musk aims to build the Model S , which will cost $57,000 and help Tesla sell more cars to normal citizens. The company has lost money every year since it was created in 2003.

“Having these credits gives us some flexibility for the future,” said Robert Bienenfeld, Honda’s U.S. senior manager for environment and energy strategy. “Whether we’ll need to purchase more, I can’t say.”

Tesla officials have declined to discuss Honda’s purchase of credits. In the company’s filing, there was another automaker on the list, but they weren’t identified.


9 comments:

Only California would be dumb enough to start a carbon exchange and only Honda gulible enough to spend money on it. But good move by Tesla making a cool $13.8 mil without having to do anything.

this one would hard to call only becasue its still early to tell. lets hope Tesla can teach a an old car company a knew trick

That’s a nice idea and it is a less glamorous side business of selling environmental credits to Honda Motor Co. which can really helped ease those losses.

I agree, that’s why japanese car has great advantage over the European and American cars.

well this partly true like i had said im last artical i still say Honda did this move jus to stay in the hunt. you know some times the littl guy uselly get the mos attention and normully makes the other car companys look bad

Tesla should give some credits to honda.. honda is a big help to tesla because of the technology honda shared with the them specially the E-Car technology.

Busines 101 for you companys out sourceing there products. to hope in return make the whole manfacturing there products at a lower bttom line also let hope Tesla teachs honda a thing or two about making a hybride car spically after the 1st atempt. that looked like something of a experment gone horeably wrong. but with this new partnership lets hope there a more price freindly cars that us coman people can aford.

That would be a question for the big magazines. I heard it happened, but nothing was really made of it.

Why is no one reporting that Toyota recently purchased half of Tesla?

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