Tesla, led by CEO Elon Musk, generated $1.79 billion in regulatory credit sales last year, according to a recent SEC filing. This profit was due to the failure of rival companies to sell enough electric vehicles to meet emission regulations. Businesses in the US, Europe, and China regulate environmental standards to meet emission requirements. The income from these sales totals almost $9 billion since 2009, according to Bloomberg.
Despite competition from BYD, which overtook Tesla as the world’s top seller of electric vehicles early in the year, Tesla is still seeing increased sales and profits from regulatory credits. This is due in part to the scaling back of EV plans by Tesla’s rivals. In fact, Tesla’s prediction of the credits drying up was disproved by these recent revelations.
Tesla faces competition not only from China but also from other countries with strong electric vehicle markets such as the US and Europe. Despite this challenge, Tesla remains a leader in the EV market and continues to innovate and push boundaries in terms of technology and design.