Tesla could make about a billion dollars in 2025 without even selling a car. This profit will result from the sale of emission credits to other producers.
The European Union’s increasingly strict emissions regulations are putting pressure on traditional carmakers, forcing them to pay hefty sums to their main rival in the electric car market: Tesla. Elon Musk’s emissions offset business could become an important source of income for the American company, writes Engine1.
New European rules require manufacturers to drastically reduce average emissions across their model fleet, and as of this year, the average has been reduced to just 93.6gCO2/km. Otherwise, they will have to pay huge fines.
To avoid these penalties, major brands such as Ford, Toyota or even Stellantis, which have relatively few electric cars in their range or simply do not sell that many zero-emission cars, resort to purchasing eco credits from Tesla, the most largest manufacturer of electric cars in the world.
Tesla could earn about a billion dollars just by selling emission credits to other manufacturers
This system makes it possible to buy emission credits from Tesla to offset excess CO2 values. According to UBS analysts, this could bring the company an estimated profit of one billion dollars in 2025.
In the third quarter of last year alone, this business has already generated $739 million in revenue for Tesla, and since the start of the business, revenue has already exceeded $9 billion. While many predicted a decline in those revenues as competitors expand production of electric vehicles, sluggish demand for zero-emission vehicles has kept Tesla in a dominant position.
According to the analysis, European manufacturers need at least 20% of their fleet to be made up of 100% electric cars to reach the emissions target imposed by the EU for 2025.
Source: www.promotor.ro
