Update on Teslas selling credits and annual profits.
Does Tesla rely on regulatory credits to make a profit?
From CNBC post the answer is yes.
As Tesla only sells electric cars, it receives regulatory credits for free and can sell them at a huge profit to other automakers who can’t meet regulatory requirements.
But investor Michael Burry, in a post that has been removed, said Tesla’s reliance on regulatory credits to generate profits is a red flag. He took a $534 million short position against the electric carmaker, betting that Tesla shares will fall.
Update on Teslas selling credits and annual profits.
Does Tesla rely on regulatory credits to make a profit?
From CNBC post the answer is yes.
As Tesla only sells electric cars, it receives regulatory credits for free and can sell them at a huge profit to other automakers who can’t meet regulatory requirements.
But investor Michael Burry, in a post that has been removed, said Tesla’s reliance on regulatory credits to generate profits is a red flag. He took a $534 million short position against the electric carmaker, betting that Tesla shares will fall.