Login to your account
Not a member? Register now.
AutoShopperBlog

Subscribe To The Blog:




Follow Us



The Latest News And Reviews
Throughout The Car Industry



Tesla Blasts California Air Resources Board, Other Automakers

Comments: Leave | View
On: Wed, Aug 10, 2016 at 1:51PM | By: Carl Malek


Tesla Blasts California Air Resources Board, Other Automakers

In a heated statement aimed at members of the California Air Resources Board (CARB) Tesla CEO Elon Musk pulled no punches in his critique of the board's weak mandates while also directing his frustrations at rival automakers during a key conference for the company.

In a heated statement aimed at members of the California Air Resources Board (CARB) Tesla CEO Elon Musk pulled no punches in his critique of the board's weak mandates while also directing his frustrations at rival automakers during a key conference for the company.

Musk made this statement during Tesla's 2Q earnings call on Wednesday. Musk reportedly called the California Air Resources Board’s standards "pathetically low" for allegedly fielding a system that according to Musk, allows some automakers to completely skirt the minimum sales requirement for zero emission vehicle sales according to Bloomberg. California is looking to toughen up standards revealing that it plans to have 15 percent of its new vehicles be zero emissions models by 2025. Tesla for its part has actually benefited from this initiative by selling ZEV credits mainly due to the firm exceeding the state sales mandate.

As a bonus, the company raked in $57 million in ZEV credit sales during the first quarter of this year. However, Tesla did not reveal its revenue figures for the second quarter of this year, but the company did indicate that profits dropped substantially for the second quarter. Meanwhile Diarmuid O'Connell took a swipe at rival automakers claiming that they did not do enough to expand their attempts at selling plug-in vehicles. At first glance O’Connell’s argument does appear to have some legs considering recent remarks by FCA CEO Sergio Marchionne who made it clear that selling EV vehicles is not a big priority for the firm, and even revealed that FCA is actually taking a loss on every Fiat 500e that it sells in California. O'Connell focused on pricing for his arguments claiming that many automakers put considerable premiums on EV vehicles when compared to their gas powered counterparts preventing them from generating substantial sales for the companies in question. In particular, he singled out the Chevrolet Spark EV and the Kia Soul EV in regards to the gap in price between them and their gas powered siblings.

This follows a separate announcement by Tesla late last week that revealed the company's second quarter loss widened to $293 million which is a sizable jump from the $184 million loss that the company recorded a year earlier. This figure is even more concerning since the company reported that overall revenue jumped 33 percent to $1.27 billion. The company elaborated further revealing that its production rate was approaching 2,000 vehicles a week. This is a key gain and serves as an indicator that the company can pick up the pace once the Model 3 eventually joins the Model S and the Model X on the company’s assembly lines.




Comments

Be the first to leave a comment.


Leave A Commment

Allowed HTML tags: <a href=""> <abbr title=""> <b> <em> <i>
Please no link dropping, no keywords or domains as names; do not spam, and do not advertise! rel="nofollow" is in use

Captcha