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Filed under: EV/Plug-in, Tesla Motors, Legislation and Policy

Tomorrow, we will get a fresh glimpse into the financial situation over at Tesla Motors. That’s when the California automaker, always ready to go its own way and not release monthly sale figures, will discuss its second-quarter SEC filing. From what we’ve been told, it won’t be as rosy at three months ago. In early May, when Tesla announced Q1 results and said it had made its first-ever quarterly profit, it warned that the second quarter results would not be as good. Specifically, the company said, “deferred revenue recognition required by GAAP for lease accounting will lead to a net loss on paper in Q2.” But we’ll find out the details soon enough.

Looking forward, there is another possible hurdle for Tesla’s profits. The California Air Resources Board (CARB) is thinking about changing the way it calculates zero-emission vehicle bonus credits. These would not be retroactive, but CARB may no longer allow battery swapping – which the Model S has – to get the bonus as a fast refueling option. This would reduce the value of Tesla’s ZEV credits that it sells to other automakers. In the first quarter, Tesla made $11.2 million in profit and took in $67.9 million in revenue from selling ZEV and other “regulatory” credits. You can see how, if the ZEV value declines, the company’s profit could also go away. Three months ago, Tesla said it was prepared for Q4 2013 ZEV credits to equal zero and yet Tesla CEO Elon Musk has said the company will be profitable by the end of the year even without selling credits.

Tesla has long relied on ZEV credits, and all the way back in 2010 there were stories about how the credits were running out so this is well-trodden ground. You can find all of the details of Tesla’s 2013 Q1 profits here and read more about the potential CARB changes here.

Tesla ZEV credit changes will alter profit picture, but Musk still confident originally appeared on Autoblog Green on Tue, 06 Aug 2013 17:29:00 EST. Please see our terms for use of feeds.

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Filed under: Car Buying, Hybrid, Sedan, Government/Legal, Hyundai, Earnings/Financials

2011 Hyundai Sonata hybrid

2011 Hyundai Sonata Hybrid – Click above for high-res image gallery

In mid-October, Hyundai announced that its 2011 Sonata Hybrid would be eligible for a $1,300 tax credit. The electrified mid-size sedan was to officially hit the market before the end of the year and the first 60,000 buyers who plopped down some coin for the Sonata Hybrid would’ve walked away with that juicy credit in their pockets. However, there’s a hitch: the Sonata Hybrid has been delayed and its release date pushed back until January, and GreenCarReports.com indicates that that will dash any hopes of receiving the credit, which expires on December 31.

Even so, the Sonata Hybrid still remains one of only a few mid-size hybrid sedans capable of achieving great fuel economy – 36 miles per gallon city and 40 mpg highway – and many of its competitors like the Ford Fusion Hybrid, Toyota Camry Hybrid and Chevrolet Malibu Hybrid either no longer qualify for the tax credits or aren’t available for purchase. The Sonata Hybrid is a capable car and one of the most compelling new vehicles in the mid-size segment, so missing out on the credit probably won’t affect sales dramatically, but its delay will mean that early adopters won’t have an extra $1,300 in their couch cushions next year.

Gallery: 2011 Hyundai Sonata Hybrid

[Source: GreenCarReports]

Hyundai Sonata Hybrid delay means no $1,300 tax credit? originally appeared on Autoblog on Fri, 10 Dec 2010 11:31:00 EST. Please see our terms for use of feeds.

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