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Tesla China president steps down after fewer than 9 months on the job

In July, 2013, before Tesla had delivered its first car to China, CEO Elon Musk called the country a "wild card." A year on, that continues to be the case, with media reports all over the spectrum concerning how Tesla is doing in China. The immediate future won't be any calmer with news that Tesla China president Veronica Wu has resigned from the company, having just taken the job in April. Hers follows the sudden departure of Kingston Chang, the man she replaced; he was hired away from Bentley China in March, 2013 and left in March of this year citing personal reasons. Observers have put the latest departure down to the difficulties of Tesla's expansion efforts. In spite of widely acknowledged pent-up demand and the Model S being priced below expectations in China, the company has stumbled a few times navigating issues such as customs paperwork, on-time customer deliveries, navigation systems with local mapping and the installation of charging equipment for customers in rural areas. Speculative articles questioning the company's actual sales numbers in China inflate the narrative of a "speed bump" in the way of Tesla's ambitions. Tesla China's head of charger network development, Tom Zhu, will run the company in the interim.

Tesla's ZEV credit allotment changing under new CARB rules

Could the California Air Resources Board (CARB) be taking a $55-million bite out of Tesla Motors' profits? The state regulator, which grants zero-emission vehicle (ZEV) credits for automakers making plug-in vehicles, is planning to reduce the number of credits generated by each Model S battery-electric sedan from seven to four, Bloomberg News reports. That means the California-based automaker will have fewer credits to sell to big buyers such as General Motors and Chrysler, who don't make enough ZEVs on their own to comply with state mandates. While the selling price for these credits isn't disclosed (they're private transactions), the market was a lucrative one for Tesla, which generated $129.8 million in revenue from California zero-emissions credit sales and about another $65 million selling US Corporate Average Fuel Economy (CAFE) credits last year. All told, California and federal zero-emissions credit sales accounted for about 10 percent of Tesla's sales last year. A Tesla representative didn't immediately respond to a request from AutoblogGreen for comment. This issue first came up last year when CARB hinted that it wouldn't give Tesla credit for having a battery-swapping option as it's method for quick-fueling compliance. Tesla, which appears to have been preparing for just this scenario, has been collecting revenue on credits since 2010 and achieved its first-ever profitable quarter in the first quarter of 2013 because of such credits. While the maximum number of zero-emissions credits a vehicle could garner was increased from seven to nine in the new rules, Tesla can't take advantage of that because it meets neither of the most stringent criteria: that the car in question is rated to go more than 300 miles on a full tank or battery and be able to be "filled up" (or fully charged, in this case) within 15 minutes. Those are more hydrogen fuel-cell-like targets, but Tesla has the EVs that come closest to meeting them.

Budget watchdog warns Tesla Gigafactory fight could be 'race to the bottom'

How desperate are the states in the US Southwest for a Tesla Gigafactory? Maybe a little too desperate, according to the California Budget Project. CBP says that the five states that are vying for the new big battery plant from Tesla and Panasonic are really in a "a race to the bottom from which no real winner may emerge." The CBP issued an open letter to leaders in those states that called for "greater openness in the process, strong accountability measures, and cooperation – not competition – among the states." Basically, what CBP is saying is that Tesla is trying to get too good a deal from whichever of the five states (Texas, Nevada, New Mexico, California or Arizona) will be picked for the Gigafactory to be built (well, the first one, at least). We have known for a long time that these states are fighting amongst themselves, and the CBP says that even though the Gigafactory is "undoubtedly a valuable source of economic growth for its eventual home state," since the public bidding process starts at $500 million in subsidies, the five states 'have more to gain from cooperation than from competition." After all, Tesla has made it clear that it needs the Gigafacatory to make its cheaper EV a reality, so CBP is suggesting that the states communicate with each other so that no one offers too many tax breaks in the "harmful pattern of one state 'winning' a high-profile competition." The $500 million could be better spent on other things, CBP argues, and wonders if Tesla would be "receptive to a multi-state dialogue." Your Houston News notes that Tesla is asking the states "not to discuss their offers, and states aren't talking." Tesla did not have anything more to add to AutoblogGreen, but the company has said that an official announcement on the location of the first Gigafactory is coming toward the end of this year. For now, you can read CBP's open letter in full below. An Open Letter to Five States' Officials About Tesla Motors The announcement earlier this year by Tesla Motors that it planned to establish a major electric-car battery factory in one of five western states has set off a bidding war among officials in these states. Yesterday, CBP Executive Director Chris Hoene joined with leaders at Good Jobs First and peer organizations in the other states to direct an open letter to state officials calling for greater openness in the process, strong accountability measures, and cooperation - not competition - among the states.