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InsideEVs
InsideEVs
Technology

Over 40% Of Tesla's Profit Comes From Selling Regulatory Credits

  • Tesla has made $2.1 billion this year by selling regulatory credits to automakers that haven't hit emissions targets.
  • Credit sales account for 43% of the automaker's profit.
  • If environmental standards get rolled back, that money may dry up.

Elon Musk spent around $200 million to help elect President Donald Trump. It was a surprising pairing, as Trump has long criticized electric vehicles, the primary thing Musk's biggest company makes. Trump has promised to get rid of the federal clean vehicle incentive for consumers, which Musk says will ultimately help Tesla. But if Trump delivers on another promise—rolling back emissions standards for other automakers—it may hurt another key Tesla revenue stream.

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