It turns out that Tesla has a “side” business: The dealer sells regulatory credits, or so-called carbon credits, to other companies that do not “comply” with average emissions standards; These standards must be below a certain threshold. Avoid a huge fine.
This is actually a gold mine: If a manufacturer only offers gas and diesel vehicles, it will sooner or later have to resort to such services to comply with local environmental regulations.
And, as it turns out, this is common practice: Such credits are purchased by automakers around the world whose new vehicle emissions exceed values set by local authorities in countries such as China, the European Union and the United States, namely California.
Tesla earned $1.79 billion from such credits in 2023, and the amount of earnings from regulatory credits since 2009 has reached $9 billion.
Source: Ferra
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