TESLA MAKES MONEY WITH REGULATORY CREDITS

By Anne Bourgoin

Since 2009, Tesla has cashed in no less than $9 billion in regulatory credits from other automakers who need to comply with current CO2 emission standards. In 2023 alone, the company has received a whopping 1.79 billion.

Although the Californian company knew it would make money from the sale of its extra credits, it never imagined it would be over such a long period of time, and so lucrative. This means that the company’s electric car sales are almost entirely profit-making.

According to Automotive News, the company sells its credits to manufacturers who exceed the established limits whether in China, Europe or California. Tesla is in an enviable position compared with other brands that started making EVs at a later stage. These manufacturers are struggling to meet their targets and are having to postpone or cancel their investments in the field.