Business Insider recently reported that Tesla, led by CEO Elon Musk, made $1.79 billion in regulatory credit sales last year. This profit was a result of rival companies failing to sell enough electric vehicles to meet emission regulations. Environmental standards are regulated by businesses in the US, Europe, and China to meet emission requirements. Since 2009, income from these sales has totaled almost $9 billion, according to Bloomberg.
Despite Tesla’s lead in the electric vehicle market, competition is threatening their position. However, recent revelations have shown that earnings from regulatory sales are slowly increasing, disproving Tesla’s prediction that the credits would dry up. The company’s rivals are scaling back EV plans, which has led to increased sales and profits for Tesla from regulatory credits.
Tesla currently faces competition from China, where BYD overtook the company as the world’s top seller of electric vehicles early in the year. Despite this threat, Tesla remains a leader in the industry and continues to innovate in the field of electric vehicles.