CARB to vote November 7
California has published new rules for zero-emission motorcycles that would mandate zero-emission motorcycles (ZEMs) in the state for the first time in 25 years. With the California Air Resources Board’s proposed ZEM credit system, one company -Aptera- believes it could earn a substantial new revenue stream, similar to Tesla’s success with ZEV credits.
For the first time in over 25 years, CARB is taking aim at emissions from 2-3 wheeled vehicles. Unlike light-duty vehicles, motorcycle emissions standards haven’t changed since 1998, and today’s gas-powered motorcycles emit 20 times more reactive gases per mile than modern cars,says a company statement.
California’s new mandate will require that 10% of motorcycles sold in the state be zero-emission by 2028, scaling to 50% by 2035. This shift is set to reduce motorcycle emissions by half, protecting California’s air quality and health, Aptera management believes.
Aptera’s Unique Position
As a solar electric vehicle (sEV) classified as a three-wheeled motorcycle, Aptera’s design aligns directly with California’s vision. Powered by integrated solar panels, Aptera is a truly zero-emission vehicle, delivering clean, efficient transportation without relying on the grid or gasoline for daily commutes.
The company has a manufacturing plant in Carlsbad California.
Revenue Potential
Tesla has proven the financial potential of ZEM credit trading, amassing over $9 billion from regulatory credits since 2009. In Q3 2024 alone, Tesla’s ZEM credits accounted for $739 million, nearly 34% of its net income. For Aptera, each vehicle sold in California will generate multiple credits, creating a significant new revenue stream through the sale of credits to other OEMS, supporting our profitability, and contributing to California’s environmental goals.
CARB will vote on this landmark regulation on November 7.
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caption: California manufactured electric motorcycle made by Aptera