Tesla’s secret. Profit was not just due to car sales


connected / Flickr

An analysis of Tesla’s report and accounts revealed that the business of selling CO2 for other manufacturers it is a substantial source of company revenue.

In the United States, 11 states require a certain percentage of electric vehicles sold or purchase credits from other manufacturers. These increasingly tight pollutant emission standards make Tesla very successful in selling credits.

According to CNN, Elon Musk’s company is able to provide other manufacturers with enough credits to avoid fines for non-compliance with its pollutant emissions targets, since it only has electric vehicles in its fleet.

This system gave the company 3.3 billion dollars over the past five years. Data from the report and accounts also show that $ 1.58 billion was obtained in 2020, well above the $ 594 million obtained in 2019).

These figures are proof of the importance of the market for the sale of CO2 in financial terms. Cited by CNN, Gordon Johnson of GLJ Research says that the brand “loses money selling cars” and that “makes money selling credits“.

Johnson further states that “credits are running out”Which is not entirely a lie. Car brands have a limited amount of credits, which derive from the fact that they sell cars with very low emissions, so this will be an endangered market in the medium term.

In addition, more and more manufacturers are having electrics in their ranges. This circumstance will cause many manufacturers to stop betting on the acquisition of credits from other groups.