- Tesla achieved approximately $ 2.8 billion of cars that did not sell its competitors last year.
- The company sells the organizational credits for auto industries that have not sold enough EVS to meet emissions.
- This profitable lateral bustle is now threatened, as Trump undertakes to cancel the targets of electric vehicles.
Elon Musk may have won the “first friend” of President Donald Trump – but the new president can endanger one of the bustle of Tesla.
Tesla has made billions that sell regulatory credits for competitors in the past decade, but with Trump’s temptation to federal EV goals in his first weeks in office, the revenue current is now under threat.
Credit credit works for the auto industry, which sees it sells emissions for car makers who have not sold enough 692 million dollars In the fourth quarter of 2024.
This strong performance, along with sales of energy storage systems and unexpected bitcoin height, added a little brilliance to what was a disappointing group of results.
Tesla’s total revenue in Tesla decreased by 8 % of the same period in 2023, where the height of competition and the slow growth of EV sales of the company, with a mobilization of musk from the invested enthusiasm by focusing on the rationalization of Tesla Robotaxi and Optimus Humanoid Robot.
Although robots and robots had no effect on the public budget in Tesla, the sale of credits to competitors who failed to change enough EVS is very real money for the company.
Tesla achieved $ 1.8 billion in this practice in 2023, and this number grew to nearly $ 2.8 billion in the past year, as other auto manufacturers retracted the ambitious electric vehicle strategies amid the demand for EVS.
But with the return of Donald Trump at the White House – with the help of musk – the income stream may be about to grind to stop.
The President pledged to retreat the goals of emissions and signed an executive order last week to cancel a Biden era goal 50 % of the new vehicles that are sold in the United States should be electric by 2035.
“Tesla relied on credits to help with really profitability,” Stephanie Valdese, Citomotive, told Business Insider.
“If federal guidelines are less strict, then other manufacturers have more time and you will not need these credits as much, so I think they will definitely affect,” she added.
Trump problems
The rules of the current environment protection agency Delegating strict targets for auto manufacturers to reduce their average emissions of their auto fleets every year. Those who fail to do this face large fines, which can be avoided Buy credits from auto manufacturers who sell a lot of EVS.
Since Tesla only sells EVS, this system allows the company to earn money from something you do anyway. The credits were responsible for more than a third of Tesla Al -Safi’s income in 2024.
Tesla will continue to make money from this practice in places like Europe, where the auto industry can be appointed to the bank up to one billion dollars of credit sales, and in various states that have its emissions.
However, Trump has indicated his intention to challenge the rules of the state level as well, Issuing an executive order last week Which sought to end the rules of the state designed to gradually get rid of the combustion engine vehicles.
This comes at a time when the Tesla Musk coach expands his role and influence in the Trump administration, with the role of reducing the cost in DOGE and even According to what is said, it occupies a office space In the White House.
Musk has grown as “Buddy First” even with Trump targeting the EV incentives and benefits that Tesla benefit directly.
Tesla CEO has expressed his support to cancel a major tax incentive worth $ 7500 for new electric cars, a step in which the Trump team looked. Musk publicly said he believed that the move would harm Tesla more than his own company.
In addition to the organizational changes in the EV space, Tesla can also be postponed Trump’s tariff proposed on China. “The imposition of definitions” will have an impact on our business and our profit. “
Tesla did not respond to a request for comment, he was sent outside the regular working hours.
