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The Dirty Little Secret At Tesla Motors

by staff

Tesla's profits don't come from the sale of it's cars. It comes from regulatory credits.

What are regulatory credits? Eleven states have laws that state that a automakers MUST sell a certain amount of zero-emission cars and trucks by 2025. If the automakers can't, they MUST buy regulatory credits from another car maker that meets the requirements. Tesla exclusively sells electric cars, so Tesla gets paid by the other automakers.

It's a windfall for Tesla. It brought in $3.3 BILLION over the last five years. The $1.6 BILLION it received in 2020 was much larger than the $721 million it made in net income. If it hadn't received the regulatory credits, it would have posted a net loss for the year.

Tesla LOSES money selling it's cars. They MAKE money selling credits. Not a very good and sustainable business model.

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