"The only manufacturer that would have a surplus of credits is Tesla, because all they do is sell electric vehicles. A manufacturer has to enter into an agreement with them to purchase credits to help them meet the mandate."
"In Canada, 20 percent of new car sales in the 2026 model year must be of an emissions-free powertrain. This number will eventually increase to 100 percent of sales by 2030, or else automakers will pay a substantial fine - $20,000 per vehicle."
"Tesla has made just over $1 billion this year alone in automotive regulatory credits, which is revenue acquired from selling these to lagging car companies. Kingstone believes Tesla could be looking at roughly $3 billion in credit purchases to comply with the global regulations."
Several Canadian automakers are failing to meet mandated minimum sales targets for emissions-free vehicles, creating a shortfall under national zero-emission vehicle mandates. Canada requires 20 percent of new car sales in the 2026 model year to be emissions-free, rising toward 100 percent by 2030, with fines of $20,000 per noncompliant vehicle. Companies can avoid fines by purchasing surplus emissions-free credits from manufacturers with excess EV sales. Tesla is currently the only company with a surplus and has earned just over $1 billion this year from selling regulatory credits, with estimates of roughly $3 billion in potential credit purchases.
Read at TESLARATI
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