Legacy automakers are secretly paying Tesla over $10 billion for carbon credits to avoid fines related to emissions, significantly boosting Tesla's profits while they struggle to meet electric vehicle production requirements
Questions to inspire discussion
Tesla's Carbon Credit Revenue
🚗Q: How much has Tesla earned from selling carbon credits?
A: Tesla has generated over $10 billion from selling carbon credits to other automakers over the past 6 years, with $2.5+ billion in 2023 alone, including $554 million in Q3.
💰Q: What percentage of Tesla's net income comes from carbon credits?
A: In Q3 2023, carbon credit sales represented 29% of Tesla's net income, highlighting the significant impact on the company's financial performance.
Impact on Legacy Automakers
🏭Q: Why do legacy automakers buy carbon credits from Tesla?
A: Legacy automakers purchase credits to offset emissions from their polluting vehicles, as they struggle to meet emission standards and often incur losses on EV sales.
Future of Carbon Credit Market
📉Q: Will Tesla's carbon credit sales continue to grow?
A: While carbon credit sales to automakers may decrease by 2030, Tesla's revenue from this source could still grow through sales to the fossil fuel industry and power plants.
Tesla's Battery Division Growth
🔋Q: How is Tesla's battery division performing compared to EV sales?
A: Tesla's battery division is growing much faster than its EV sales, potentially offsetting any future decrease in carbon credit revenue from automakers.
Key Insights
Tesla's Carbon Credit Revenue
🚗Tesla has generated over $10 billion from selling carbon credits to other automakers in the past 6 years, primarily to legacy manufacturers avoiding EV production.
💰In 2023, Tesla earned $2.5+ billion from carbon credits, with $554 million in Q3 alone, representing 29% of net income.
Market Dynamics and Future Outlook
🔋Tesla's battery division is growing faster than its EV sales, potentially offsetting future decreases in carbon credit revenue from automakers.
🏭The company may continue to profit from carbon credits by selling to the fossil fuel industry and power plants, even as automakers require fewer credits.
Industry Impact
⚖️The carbon credit market incentivizes automakers to invest in renewable energy and EV production, but it's not a long-term solution as manufacturers eventually transition to electric vehicles.
#Tesla
XMentions: @Tesla @TheEVKing
Clips
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00:00 💰 Legacy automakers are secretly paying Tesla over $10 billion for carbon credits to avoid fines due to their struggles in producing electric vehicles.
- Legacy automakers are secretly paying Tesla over $10 billion for carbon credits to avoid fines.
- Legacy automakers are secretly paying Tesla billions for regulatory credits to avoid fines, as they struggle to produce their own electric vehicles.
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02:07 💰 Tesla's profits soared in 2023, generating over $2 billion from selling carbon credits to legacy automakers to help them avoid fines.
- Tesla generated $0 from carbon credits in 2015.
- Tesla's profits have significantly increased over the years, largely due to selling carbon credits, which have proven more lucrative than analysts predicted.
- Tesla has generated over $2 billion from selling regulatory credits to competitors in 2023, significantly surpassing last year's total.
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05:09 💰 Legacy automakers are secretly funding Tesla to offset fines as they struggle with EV requirements and declining profits.
- Tesla generated significant revenue from automotive sales and carbon credits, while legacy automakers struggle to meet electric vehicle requirements and face declining profits.
- Tesla has profited from selling carbon credits to automakers, but as competition increases, major manufacturers are shifting strategies and may now be supporting Chinese companies instead.
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07:24 💰 Tesla has made around $10 billion from carbon credits since 2009, with a 94% revenue surge in 2023 significantly boosting its profits.
- Tesla has earned approximately $10 billion from selling carbon credits since 2009, with profits from these credits significantly contributing to its net income, particularly in 2023.
- Carbon credit revenue surged by 94% as their profitability increases, with varying prices based on geography and emission standards.
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09:37 🌍 Legacy automakers are buying carbon credits from Tesla to meet emission standards, potentially hindering their own EV investments.
- Tesla sells carbon credits to automakers exceeding emission standards, allowing them to offset pollution while investing in renewable energy technologies.
- Legacy automakers like Ford and General Motors may reduce their EV investments while still needing to purchase carbon credits from Tesla to meet regulatory requirements.
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11:42 💰 Legacy automakers are funding Tesla to dodge pollution fines amid struggles in their electric vehicle sectors.
- Legacy automakers are financially supporting Tesla to avoid fines from pollution penalties, as they struggle with losses in their electric vehicle segments.
- Volkswagen is delaying the mass production of its $225,000 id2 electric vehicle to 2026 due to financial pressures and new emission standards, while also seeking carbon credits from battery deployment.
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13:26 💰 Legacy automakers are secretly buying billions in carbon credits from Tesla to dodge fines, boosting Tesla's revenue amid their financial struggles.
- Tesla's energy storage division is rapidly growing, significantly increasing revenues from both energy sales and carbon credits, despite some analysts predicting a slowdown in carbon credit profits.
- Legacy automakers are secretly purchasing carbon credits from Tesla to avoid fines, despite the lack of transparency in their financial disclosures.
- Chrysler and Volkswagen have purchased billions in regulatory credits from Tesla to avoid fines, highlighting the financial struggles of legacy automakers.
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16:19 💰 Legacy automakers are secretly paying Tesla billions for carbon credits to dodge emissions fines, even as EV adoption rises and Tesla's credit revenue is set to decline.
- Legacy automakers are financially supporting Tesla to avoid fines related to carbon emissions, while Tesla's revenue from carbon credits is expected to decline as EV adoption increases.
- The US and UK are implementing strict emissions reduction targets, with Europe banning new petrol and diesel cars by 2035, while Tesla stands to gain from selling carbon credits in China.
- Volkswagen's joint venture purchased green credits from Tesla, contributing to an expected $390 million in revenue for Tesla in 2021, likely involving other legacy automakers in China.
- Legacy automakers are secretly paying Tesla billions for carbon credits to avoid fines, despite the potential benefits of increasing their own electric vehicle production.
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Duration: 0:20:52
Publication Date: 2024-11-01T09:31:50Z
WatchUrl: https://www.youtube.com/watch?v=tWZUlPsgcFk-------------------------------------