Tesla’s 2023 regulatory credits generated an additional $1.79 billion in revenue, according to its 10-K filed last week.
The money Tesla makes due to other carmakers needing assistance to reach emissions standards continues to accumulate, and since 2009, it has made almost $9 billion in revenue because of the system.
Bloomberg reported this morning that Tesla’s $9 billion in revenue due to the sale of regulatory credits has helped the company obtain what is basically pure profit. Former Tesla Chief Financial Officer (CFO) Zachary Kirkhorn, who left the company last year, said the credits would eventually go away as other automakers caught up to emissions standards.
However, that was in 2020. Tesla has brought in over $1.7 billion in credits in both 2022 and 2023, while 2020’s total was $1.58 billion.
Although many large automakers have pledged to transition to EVs, it has been a much more difficult road than initially imagined.
Volkswagen and General Motors are two companies mentioned in the report that have had trouble reaching EV goals and have, in turn, needed help meeting emissions standards.
These companies and their shortcomings in meeting the strict guidelines have basically given Tesla the opportunity to continue to take cash from them without
Fiat-Chrysler is another company that needed assistance from Tesla to reach emissions standards in the European market a few years ago.
It had fallen well behind in reaching the strict emissions goals the European Union had set, and Tesla, along with Fiat-Chrysler, had come to an agreement that would “pool” emissions together, lowering FCA’s CO2 output per vehicle.
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