Tesla generated nearly 34 million tons of greenhouse gas credits through sales of electric vehicles in the 2023 model year, Reuters reported, compared to a significant credit deficit for the U.S. auto industry, which is facing stricter carbon emissions standards.
According to a report first seen by Reuters, the U.S. Environmental Protection Agency (EPA) stated that in 2023, the fuel economy of new cars in the United States increased by 1.1 miles per gallon (about 1.8 kilometers), reaching a record high of 27.1 mpg (approximately 43.6 kilometers per gallon). For the 2024 model year, the EPA expects the fuel economy of the entire U.S. fleet to improve to 28 mpg (around 45.1 kilometers per gallon).
Among large automakers, Stellantis had the lowest fuel economy, followed by General Motors and Ford, while Tesla had the highest fuel economy, followed by Kia Motors and Hyundai Motor. Last year, Stellantis and GM paid a total of $363 million in civil penalties for failing to meet U.S. fuel economy requirements.
In 2023, the entire U.S. auto industry generated a greenhouse gas emissions credit deficit of nearly 11 million tons. Excluding Tesla, automakers collectively had a total credit deficit of 43.5 million tons of greenhouse gas emissions in the U.S., with GM having the largest deficit of 17.8 million tons. By contrast, in 2022, the U.S. auto industry received a total of 3 million tons of credits, while Tesla was far ahead with 19.1 million tons of credits.
However, the EPA noted that the U.S. auto industry still has a surplus of 123 million tons of credits to meet future needs.
According to the EPA report, GM purchased about 44 million tons of greenhouse gas emissions credits in 2023, while Tesla sold about 34 million tons of credits, marking the largest greenhouse gas emissions credit transaction in the U.S. to date.
An EPA investigation in July found that GM had about 5.9 million vehicles that exceeded emissions standards. As part of the settlement, GM was required to deduct an additional 49 million tons of carbon emission credits.
At the same time, the EPA also reported that the production of electric vehicles and plug-in hybrid vehicles in total U.S. vehicle production increased from 6.7% in 2022 to 11.5% in 2023, with an expected rise to 14.8% by 2024.
In March of this year, after tightening U.S. carbon emission requirements from 2024 to 2026, the EPA finalized new regulations requiring automakers to reduce carbon emissions by 49% by 2032 compared to 2026 levels.
Last week, sources indicated that U.S. President Donald Trump plans to roll back the Biden administration's federal regulations aimed at improving vehicle fuel efficiency and encouraging the transition to electric vehicles.