Business Insider reported that Tesla, led by CEO Elon Musk, saw an increase in profits from regulatory credit sales last year. This was due to the failure of rival companies to sell enough electric vehicles to meet emission regulations. Companies in the US, Europe, and China all regulate environmental standards to meet emission requirements.
According to Bloomberg, Tesla has made almost $9 billion in regulatory credit sales since 2009. However, Tesla’s prediction of the credits drying up was disproved by a recent revelation that earnings from their regulatory sales are slowly increasing. Despite this, competition is threatening Tesla’s lead in the electric vehicle market.
In fact, BYD overtook Tesla as the world’s top seller of electric vehicles early in the year. Despite this setback, Tesla’s rivals are scaling back EV plans, which has led to increased sales and profits for the company. However, Tesla did not immediately respond to requests for comments made by Business Insider.