Tesla Motors CEO Elon Musk would rather see the government place a tax on carbon emissions than increase tax credits for buyers of electric vehicles, he said last night.

At the event where Motor Trend named the Model S its Car of the Year, Musk was asked if Tesla was hoping for an increase in the $7,500 federal tax credit for buyers of Tesla cars.

"I would certainly back some increase on the tax credit," he said. But, he continued, "the right thing to do is to place a tax on carbon."

He compared greenhouse gas emissions to cigarettes and alcohol, as heavily taxed vices. "It seems like common sense, really."

If carbon is not taxed, he added, then subsidizing electric vehicle purchases would be "the next best thing."

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