While electric vehicles were once burdened by range anxiety and skimpy charger infrastructure, they’ve since ridden a wave of dramatic growth and mainstream acceptance. In fact, electric vehicle carmakers are enjoying the last laugh in more ways than one.
Why are the naysayers being proved wrong in spades? It’s not just that battery power has gone from zero to hero in the public eye. Electric vehicle carmakers are enjoying an unexpected windfall thanks to their future-forward ways because U.S. and European regulators have developed laws requiring carmakers to meet CO2 standards or face fines. Subsequently, manufacturers have relied on purchasing carbon credits from other carmakers if their fuel-burning fleets don’t meet the minimums.
Electric car offerings mean some manufacturers are way ahead in the carbon dioxide game, which doesn’t reflect too kindly on more internal combustion-focused carmakers. Brands like Fiat Chrysler, for instance, contributed more than $100 million to Tesla’s bottom line in 2018 because they didn’t attract enough buyers to their electric lineup. Similarly, Tesla has racked up more than $1.7 billion in carbon credits since 2012. In 2017 alone, electric vehicle-minded Toyota and Honda snagged nearly $110 million for the battery-powered cars in their portfolio—proof that progress, despite bumpy beginnings, can go richly rewarded.