Tuesday, February 13, 2024
about 10% of Tesla's income is from selling electric car makers "regulatory credits" to legacy automakers who must to avoid emissions fines
ZEV regulatory credit sales depend on other automakers remaining behind the curve on electrification. Several states distribute these credits for selling cars without tailpipe emissions, which negate penalties accrued for selling internally combusting vehicles. They're transferable though, so because Tesla sells only EVs, it gets plenty of credits to offload to automakers that don't sell enough EVs. They still cost the credit-purchasing company money, but less than it'd cost to pay emissions fines.
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Our Federal Government at work messing up the economy. Give it ten years and this emphasis on electric vehicles will fade when drivers realize that if electricity is not available, then they are stuck at home. In the interim, we are paying the price for the personal profits of those invested int his technology.
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