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Tesla Earned $1.8 Billion from a Side Venture in the Previous Year

ByEditor

Feb 12, 2024

Tesla CEO Elon Musk reported that the company earned $1.79 billion from selling regulatory credits last year, according to a recent SEC filing. This profit came from Tesla’s sales of electric vehicles to other automakers who have not produced enough EVs to meet emission regulations in the US, Europe, and China. Bloomberg calculated that Tesla has earned almost $9 billion from selling regulatory credits since 2009.

The company’s strong earnings from regulatory credits came as a surprise, as Tesla had expected this revenue stream to diminish as other automakers increased their EV production. However, Tesla’s earnings from these credits actually increased slightly from the previous year, when the company earned $1.776 billion. Despite this, Tesla is facing growing competition, particularly from Chinese automaker BYD, which overtook Tesla as the world’s top seller of EVs at the beginning of the year.

Tesla’s dominance in the US electric vehicle market is starting to wane as competitors scale back their EV plans and introduce hybrid vehicles into their lineups. Even so, Tesla remains a leading player in the EV industry. The fact that the company continues to profit from selling regulatory credits has confounded earlier expectations. Tesla did not immediately respond to a request for comment from Business Insider.

By Editor

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