A page turns for Tesla. While the car manufacturer has just been partially recognized for a fatal accident, ordered from around 242 million dollars in compensation, and that it is going through a difficult period, with the drastic fall of its sales, Donald Trump pushes the nail a little more.
The tax reform of the President of the United States makes a cross on the federal obligations to reduce CO2 emissions for car manufacturers, which represented a real gold mine for Tesla and other manufacturers of electric vehicles. Tesla will lose billions of dollars because of Donald Trump. Ouch.
Farewell, sale of regulatory credits
Today, Tesla reigns supreme in the electric vehicle market. The automaker does not need its competitors. But sometimes a little crutch never hurts. Since the start of the year, sales of Tesla electric cars have been in free fall. Thus, the sale of regulatory credits makes it possible to put a little butter in the spinach of Elon Musk.
While competitors have specific objectives in terms of CO2 emissions in order to support the transition to electric and relieve the planet. In case of failure, the fines are heavy. Thus, the most polluting manufacturers can turn to electric vehicle brands like Tesla to buy their excess credits. Elon Musk’s car manufacturer has a whole slew, since all of his models are electric. As a result, even when sales tumble, Tesla maintains the balance.
Since 2019, this “small” help has allowed Tesla to generate $ 11 billion. In the first quarter of this year alone, the electric manufacturer collected more than $ 150 million. Last year, the jackpot climbed more than $ 2 billion. Other less imposing and less profitable manufacturers, such as Rivian, will suffer from Donald Trump’s position.
It is certain, no longer being able to count on this source of income will hurt Tesla and Elon Musk. Especially since the car manufacturer also undergoes a customs bill of several hundred million dollars per quarter. All combined with declining sales. If the future seems rather gray for Tesla, some analysts remain optimistic. Dan Ives de Wedbush said that “The return of Musk to CEO and warlord to orient the group on an aggressive AI strategy represents the biggest and best possible news for investors”. Still according to him, Tesla will have to rely on AI, robotaxis and Optimus humanoid robots than on the automobile.
- Donald Trump removes federal CO2 emissions reduction obligations for car manufacturers
- This represents a major source of income for manufacturers of electric vehicles like Tesla
- Since 2019, Tesla has generated $ 11 billion thanks to the sale of its extra credits
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