A Monday Environmental Protection Agency (EPA) report shows that Tesla (TSLA, Financial) produced about 34 million metric tons of greenhouse gas credits in the 2023 model year, significantly more than other manufacturers as the sector struggled to fulfill strict emissions targets.
Although the car sector as a whole showed an 11 million metric ton shortfall in greenhouse gas credits, General Motors (GM, Financial) led in deficits with 17.8 million metric tons. About 44 million credits were bought by GM during the year; Tesla accounted for the most of the sales. With Tesla excluded, manufacturers had a total deficit of 43.5 million credits, a dramatic change from 2022 when the sector had a surplus of 3 million credits driven by 19.1 million credits.
Reaching a record 27.1 mpg, the EPA noted fleetwide fuel efficiency improved by 1.1 miles per gallon in 2023, and is expected to rise to 28 mpg in the 2024 model year. Among the major automakers, Stellantis (STLA, Financial), GM, and Ford (F, Financial) claimed the lowest fuel economy; Tesla stayed the most efficient. As the EPA has strengthened pollution requirements and manufacturers must cut emissions by 49% by 2032 above 2026 levels, regulatory difficulties still loom large. This relates to settlements like GM's 49 million metric ton credit forfeiture for almost 6 million vehicles' excess emissions.
