Last year, Tesla generated nearly $2.8 billion from selling regulatory credits to rival automakers struggling to meet emissions standards, a revenue stream that has been significant for the company. However, this lucrative side business is now under threat as President Trump is set to scrap federal electric vehicle targets. Tesla's overall automotive revenue fell 8% due to increased competition and a slowing EV market, making the reliance on regulatory credits even more pronounced amid plans for future technologies like robotaxis and humanoid robots.
Tesla's lucrative regulatory credit sales, which generated $2.8 billion last year, face jeopardy as President Trump vows to scrap federal EV targets.
Amidst rising competition and decreasing EV sales, Tesla's credit sales overshadowed disappointing automotive revenue, showcasing a pivotal revenue source that may soon vanish.
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