WASHINGTON, Nov 25 (Reuters) - Tesla generated

nearly 34 million metric tons of greenhouse gas credits in the

2023 model year by selling electric vehicles, as the auto

industry racked up significant credit deficits in the face of

more stringent emissions standards.

In a report first seen by Reuters, the Environmental

Protection Agency said Monday new vehicle fuel economy increased

by 1.1 miles (1.8 km) per gallon in 2023, reaching a record high

27.1 mpg (43.6 kpg). The EPA said fleetwide fuel economy is

preliminarily projected to rise to 28 mpg (45.1 kpg)in the 2024

model year.

The industry as a whole generated nearly 11 million metric

tons, or megagrams, of greenhouse gas emission credit deficits,

led by General Motors ( GM ), which posted a 17.8 million-metric ton

deficit.

GM purchased about 44 million credits in 2023, the EPA

report said, while Tesla sold about 34 million, the largest of

all transactions.

Excluding Tesla, automakers generated a deficit of 43.5

million credits in 2023. By contrast in 2022, the industry

earned a total of 3 million credits, led by Tesla's 19.1 million

credits.

EPA said the industry still has a total surplus of 123

million metric tons of credits to meet future requirements.

GM also had to forfeit another 49 million metric tons of

credits as part of a settlement in July of an EPA investigation

that found excess emissions from approximately 5.9 million GM

vehicles.

Reuters reported last week that President-elect Donald

Trump's incoming administration plans to target federal

regulations that aim to make automobiles more fuel-efficient and

incentivize a shift toward electric vehicles, citing sources.

In March, the EPA finalized new rules requiring automakers

to cut emissions by 49% by 2032 over 2026 levels compared with

56% under the proposal last year after dramatically tightening

2024 through 2026 requirements.

Stellantis ( STLA ) had the lowest fuel economy of major automakers,

followed by GM and Ford, while Tesla is the most efficient

followed by Kia and Hyundai.

Last year, Reuters reported Stellantis ( STLA ) and GM had paid a

total of $363 million in civil penalties for failing to meet

U.S. fuel economy requirements.

Horsepower, vehicle weight and size all hit new records in

2023. Sedans and wagons sold fell to just 25% of vehicles sold

in 2023, while SUVs rose to 58%.

EPA said electric and plug-in electric production rose from

6.7% in 2022 to 11.5% in 2023 and projected it to reach 14.8% in

2024.