It was a request from my previous article to dive further into Tesla's revenues from other credits, which are mainly generated from sales of greenhouse gas (GHG) emissions. Unlike the zero emission vehicle (ZEV), which is only enforced by a fraction of states, the GHG legislation is a federal requirement established by the Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA). EPA published its report for 2018 a few weeks ago, which summarized the market activity for the 2017 model.
Source: Tesla 10-K Forms
The GHG legislation is relatively technology neutral so automakers can implement fuel available as long as it reduces their vehicle fleet emissions. Electric Vehicles (EV) and Fuel Cell Electric Vehicles (FCEVs) are extremely favorable since they are believed to be zero g / m in exhaust pipes. thus, a significant benefit from a fleet's average emissions. For car manufacturers who do not have a fleet to compensate, they can generate a significant amount of credits to sell to other less compatible car manufacturers.
Tesla has almost immediately sold each fuel credit generated in each respective model year. Unlike ZEV credits, where Tesla has sold them to the majority of car manufacturers, they have only been purchased by Mercedes and FCA.