Tesla earned 9 billion by selling environmental credits to other

Tesla earned $9 billion by selling environmental credits to other automakers

Attempts to cope with climate change on a global scale have led to the fact that automakers are forced to meet certain quotas, and if one company produces too many cars with internal combustion engines, it can conditionally compensate for this by purchasing “credits” from another market participant. Tesla has been on similar activity since 2009 already earned almost $9 billion

  Image source: Tesla

Image source: Tesla

In fact, the implementation of such regulatory credits does not require any effort from Tesla. They are simply counted due to the fact that this company only produces electric vehicles, which are considered environmentally friendly vehicles by existing regulations. If some other company has gone too far with the production of cars based on internal combustion engines, it can “buy indulgence” in the form of regulatory loans from the same Tesla or any other automaker that has a positive “balance” in this sense.

Last year, Tesla earned $1.79 billion from such activities, a year earlier about the same amount, and since 2009, the company’s income from the sale of regulatory environmental credits has reached a total of $9 billion. Tesla representatives stated back in 2020 that there was not much count on this expense item, but the slowdown in the expansion of electric vehicles in the global market, combined with the desire of legislators to tighten environmental regulations, will certainly provide this company with several more years of stable receipts of money on this basis.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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