In 2020, Tesla made $1.79 billion in profits through the sale of regulatory credits, according to a recent SEC filing. This increase was due to the failure of rival companies to sell enough electric vehicles to meet emission regulations. Environmental standards are regulated by businesses in the US, Europe, and China to meet emission requirements. Since 2009, Tesla has generated almost $9 billion in revenue from these sales.
Despite this success, Tesla’s lead in the electric vehicle market is being threatened by competition from China. BYD overtook Tesla as the world’s top seller of electric vehicles early in the year. However, Tesla’s prediction that regulatory credit sales would dry up was disproved by recent revelations that earnings from these sales are slowly increasing.
Tesla’s rivals are scaling back their plans for electric vehicles, which has led to increased sales and profits for the company from regulatory credits. Despite this competition, Tesla remains a leader in the industry and continues to innovate with new products and technologies.
In response to requests for comments from Business Insider, Tesla did not immediately respond.