Trump's plan to eliminate EV targets could hurt Tesla's revenue stream
Kumar Shivam | Feb 01, 2025, 00:38 IST
( Image credit : TOIGLOBAL )
Donald Trump’s plan to remove electric vehicle (EV) targets could hurt Tesla’s profits from selling regulatory credits to automakers failing to meet emissions standards. Tesla earned $2.8 billion in 2024, up from $1.8 billion in 2023. Despite Elon Musk’s close relationship with Trump, this revenue stream could soon disappear, posing a challenge for the company.
Donald Trump has recently promised to eliminate electric vehicle (EV) targets, a move that could pose a major issue for Tesla. The company has been making significant revenue by selling regulatory credits to automakers who haven't sold enough EVs to meet emissions standards, earning $2.8 billion in 2024 alone, according to a report from Business Insider. However, with Trump’s push to remove these EV targets, Tesla’s earnings from this strategy may take a hit.
Tesla is one of the top sellers of electric vehicles in the U.S., but it has also profited from the cars that its competitors have struggled to sell. Despite Elon Musk’s close ties to Trump, which earned him the title of the president's "first buddy" at the White House, Tesla may not be able to avoid the impact of these changes. As Business Insider notes, this lucrative revenue stream could soon disappear.
In 2023, Tesla made $1.8 billion from regulatory credits, and that number surged to $2.8 billion in 2024—a sharp increase for what is essentially a secondary business.
Tesla is one of the top sellers of electric vehicles in the U.S., but it has also profited from the cars that its competitors have struggled to sell. Despite Elon Musk’s close ties to Trump, which earned him the title of the president's "first buddy" at the White House, Tesla may not be able to avoid the impact of these changes. As Business Insider notes, this lucrative revenue stream could soon disappear.
In 2023, Tesla made $1.8 billion from regulatory credits, and that number surged to $2.8 billion in 2024—a sharp increase for what is essentially a secondary business.