A big part of the Tesla’s revenues and profitability come from other auto companies, who must purchase emissions credits from Tesla. From Eric Peters at ericpetersautos.com:
You’ve probably heard that the EV “market” isn’t doing so well; but it’s been doing great for Tesla.
Elon Musk’s battery powered vehicle company took in (earned in this context is akin to using ask in the context of government demanding the payment of contributions to Social Security) just shy of $2 billion dollars last year extorting money for “credits” bought under duress by other car companies that haven’t manufactured enough battery powered devices of their own to meet the “zero emissions” regulatory quotas laid down by the government.
Buying “credits” from Tesla – which manufacturers only battery powered devices – is how these other manufacturers make up the difference.
It’s easier – and cheaper for them – than building enough battery powered devices of their own to meet their quota. Of course, they’re not paying for that. You and everyone else who doesn’t buy a battery powered device is paying for it. The cost of buying those “credits” is folded into the price of new vehicles that aren’t devices, but which do sell.
For more, courtesy of the cost of the “credits.” But the price is still worth not being stuck (literally) with a device.
