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Cake day: August 9th, 2023

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  • It’s a major part of their profit margin, but even with their decline this quarter, they’d eek out a profit without it.

    https://carboncredits.com/teslas-carbon-credit-revenue-soars-to-2-76-billion-amid-profit-drop/

    In Q4 2024 alone, Tesla earned $692 million from selling regulatory credits or carbon credits, accounting for nearly 30% of its quarterly net income of $2.33 billion.

    At least for now, they’re keeping their financial head above water even without carbon credits. Of course, no business would willingly throw away 30% of its net income.

    The big thing for them is that those credits are free profit. Other car companies have to buy them to make up for their ICE cars. Tesla doesn’t sell a single ICE car, so everything they make comes with a credit. Mind you, as the market transitions away from ICE, those will naturally evaporate from the company’s ledger.