Trump Threatens Tesla Revenue Stream That’s Never Been Bigger

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The revenue in question comes from the regulatory credits Tesla earns by selling electric vehicles, which meet increasingly strict government pollution regulations around the world. Automakers that don't sell as many plug-in cars can buy these credits to meet their emissions rules requirements.

The company generated revenue last year alone. This was up 54% from 2023 and driven by demand for credits in North America, the company said Thursday, as other manufacturers scaled back their EV plans.

an exemption allowing California to impose its own tighter pollution regulations

worth of regulatory credits in 2024

If Trump enacts several policy changes that may be detrimental to electric vehicles,

Adjustments to US rules wouldn't completely eliminate Tesla's regulatory credit business, because the company also sells credits in other markets, such as Europe. The company doesn't provide a breakdown of where it generates this revenue in its quarterly statements or regulatory filings.

Tesla CEO Elon Musk, who contributed significantly to Trump's campaign during the last election, has toned down concerns that the president's plan could potentially decrease demand for electric vehicles.

“Sustainable transportation will probably stay the course,” Musk said during a call to discuss financial earnings. “It can't be halted.”

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