This system creates an interesting dynamic and I think is a really smart way to go about it. If you have the capacity to produce more than the mandate then that is a logical move. One you are gaining market share in the EV space but secondly you can sell your extra credits to make yourself even more profitable. Or generate a perpetual effect where profits from selling credits can be used to reduce sales price of vehicles gaining more market share gaining more credits. I seriously think the carrot will outweigh the stick in this dynamic and securing raw materials will be the only thing stopping them blasting the 10 and 12% targets.
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