Thanks to auto regulations in California, Tesla's competitors have helped the company generate over a billion dollars in revenue.

As per California regulations, automakers are required to sell electric and other non-polluting vehicles in proportion to their market share. If they fail to do so, they have to purchase credits from electric car manufacturers like Tesla to make up for the difference. This regulation is despised by conventional automakers. However, as they don't have any say in this, preparations are in full swing to implement the same in other states and countries too.

According to a report by Bloomberg, Tesla is one of the few companies which sells electric vehicles.

The automaker sold more than $302 million in regulatory credits last year. In the near future, China and the European Union (EU) may have a legislation similar to California. These blocs will also prove to be huge revenue churners for Tesla.

Huge potential in China

According to a report by The Economic Times, The Chinese car market is already larger than the North American market, and it will continue to grow in the coming years. Besides, Beijing is putting more pressure on its manufacturers to increase the number of electric vehicles [VIDEO] on the road. Very soon, the Chinese market will overtake the American market in its demand for electric vehicles. However, it remains to be seen if Tesla will survive in China, as the country is known for duplicating several American products.

Money matters

According to a report by Bloomberg, the top executive of the California Air Resources Board, Mary Nichols, stated that the rival car companies have become increasingly annoyed because they know that Tesla is the only manufacturer that solely deals with electric cars.

Having to pay a considerable sum as regulation credit is burning a hole in their pockets.

Elon Musk is unhappy

Although the California regulations have helped Tesla make more profits, Tesla's founder Elon Musk is not happy. Musk believes that the legislation is too weak. The CEO of Tesla insists that the Air Resources Board should be more exigent.

According to recent reports, Tesla's monopoly will soon come to an end. On Thursday, Daimler, Mercedes' parent company, announced that it is investing $ 1 billion in its Alabama plant to manufacture an electric SUV. This vehicle will be ready in 2020. This move is seen by many as Mercedes' challenge to Tesla.