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Does anybody out there know the •details• of how the Tesla carbon credit scheme works? I understand the basic idea:
- Regulatory standards say carmakers have to either cut emissions or buy “carbon credits.”
- Tesla can sell carbon credits because it makes EVs.
- Tesla makes more money selling carbon credits than it makes from selling cars…apparently? somehow?!
1/2
@inthehands I don't think that's true. From their 10-K filing the automotive sales revenue is much larger than automotive regulatory credits.
https://www.sec.gov/Archives/edgar/data/1318605/000162828025003063/tsla-20241231.htm
Still $2.7 Billion is a hefty target
Mastodon 🐘wrosecrans (@wrosecrans@mstdn.social)@inthehands@hachyderm.io
My best understanding is that Tesla doesn't take more money selling credits than selling cars, in terms of revenue. Cars is a bigger revenue source. But cars have less profit, cuz you have to build a whole car.
So they can sell a car close to cost. Then sell a carbon credit at basically zero additional cost and make pure profit, and that's where the operating profit comes from. Past that, I'm still vague on how the program is run.