AUTONEWS

How Tesla made $1.79 billion without effort...

In 2023 alone, Tesla made a profit of 1.79 billion dollars, around 1.67 billion euros, just by selling carbon credits to other manufacturers that pollute more than the limit imposed by regulators. And if we consider the gains from this operation, since it began taking its first steps in 2009, the North American brand has already earned more than 9 billion dollars just selling carbon credits, a business that does not oblige the North American manufacturer moving a finger.

Manufacturers that mainly sell vehicles with combustion engines often choose to exceed the CO2 limit for the mid-range defined by regulatory authorities, as producing more electric vehicles, plug-in hybrids or even hybrids would entail higher investments . They therefore decide to sell more vehicles equipped exclusively with combustion engines, which are more polluting but which traditionally ensure higher profit margins. However, on the other hand, this exposes them to paying fines (€95 for each gram above the limit, multiplied by the total number of vehicles sold).

The size of these penalties can be brutal, especially for a medium or large production manufacturer, and some could even run the risk of bankruptcy. That is why the European Union has opened up the possibility for manufacturers who are above the limit to buy carbon credits from manufacturers who are below the limit, as is the case with Tesla, but also with Toyota, whose sales volume of trams is small, but which It manages to meet the limit only at the expense of its full hybrid mechanics and some plug-in hybrid models. This purchase of “negative carbon”, to compensate for the excess “positive”, turns out to be an excellent deal for manufacturers like Tesla, but it is also an excellent deal for the brands that pollute the most, as they consciously make the calculations. and conclude that it pays to exceed the limits and then lower them by purchasing credits.

The need to use carbon credits exists in Europe, but also in the USA and China, although this is a practice that will not continue over time. However, while it is in force, it will offer a big prize to electric vehicle manufacturers who, the more models they sell, the more carbon they have to sell.

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