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Business

Power struggle over gearing up electric car sales

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Opening sequence

Business

Power struggle over gearing up electric car sales

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COMING UP:Power struggle over gearing up electric car sales

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00:00:02
>> A power struggle over electric cars in California, the state so far most advanced in developing clean energy technology. The goal to have zero emission cars make up 15% of the state's annual auto sales by 2025. The problem, after revving up to 3%, thanks to a host of new electric and hydrogen powered models, car makers have hit a bit of a roadblock.
00:00:27
Reuters Roy Carroll.>> Under the current plan, companies get points for every zero missions vehicle that they sell and they could sell those credits onto other car makers that haven't produced enough clean cars to meet the required targets. The criticism is that the system has too many credits and that's taking away the incentive for car makers to produce and sell electric cars.
00:00:49
Some blame that for the slow pace of electric cars sales growth in the state.>> Tesla, for example, has been a pioneer in the electric industry and to date, it's sold over $600 million worth of credits to companies who haven't keep up. Part of the problem is that the onus is on the seller rather than the buyer.
00:01:09
>> Other auto makers say the mandate to sell the cars without any kind of requirement to buy them is a difficult task given the sustained low gas prices.>> In California, consumers have gotten a rebate and tax credit for buying a zero emission car, and a sticker to cruise through carpool lanes on congested highways.
00:01:28
But that hasn't been enough to attract buyers to vehicles that are limited to less than 100 miles on a single charge, and need hours to refuel. While Teslas can go farther, the price tag is typically $100,000. Whether California can successfully retool it's program will be closely watched by regulators and environmentalists worldwide.
00:01:51
So far, nine states have all ready adopted the same plan.