A big problem for Tesla isn't getting much attention
9 months ago
- #Tesla
- #Regulatory Credits
- #Automotive Industry
- Tesla has earned billions from selling regulatory credits to competitors.
- Republican tax bill removes financial penalties for automakers, reducing demand for Tesla's credits.
- Analysts predict Tesla's regulatory credit revenue to drop by 75% next year and vanish by 2027.
- Regulatory credits have been crucial for Tesla's profitability, sometimes exceeding net income.
- Loss of credits could lead to Tesla reporting quarterly net losses again.
- Tesla faces additional challenges, including a sales slump and thinner profit margins.