California may cap ZEV-credit sales; why it matters to Tesla, and for electric cars

Tesla Model S undergoing assemblyChanges to California’s zero-emission vehicle (ZEV) rules could soon cut a major source of income for Tesla. California emission rules require high-volume automakers to sell either battery-electric or hydrogen fuel-cell cars in proportion to their overall sales. Some manufacturers build “compliance cars” purely to satisfy this mandate, while…

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