Tesla sells these credits at a discount compared to the fine, making them the cheaper option. The new bill reduces the fine to zero, removing the need to buy credits. As a result, Tesla’s US regulatory credits will become worthless, though they will continue to earn credits in Europe and China 2/2
That is a massive hit to Tesla's finances!
In Europe, 2025-2027 will be meassured combined, i.e. you can compensate in 2027 your missed average in 2025/2026 This was implemented earlier this year But I'm totally ignorant as to how the contract within the pooling makes works. Is Tesla getting money now? Accruing? If accruing.. wow, finished
This is really interesting US credits are out and with Tesla sales slowing in the EU (don't know if Norway sales are included, if not then even worse for Tesla). Stellantis at least will keep buying EU credits it seems.
They are indeed finished financially. Their only positive contribution to Q1/2025 ledger was: - income from interest - sales of energy credits as highlighted by Troy They are toast!
Almost right. This is the fuel economy standards, for which automakers pay penalties for falling short, not the ZEV standard, which is a California thing. Congress is also trying to end the Clean Air Act waiver that gives Cali the ability to set this (and 12+ states to follow), probably illegally.
The way this is being interpreted is that there is no longer any fines for carmakers not making enough EVs, so it doesn't matter if it's federal or state credits, there is no automaker that needs to buy them now because they aren't getting fined anymore. Are you saying this is wrong?
Trump is also going to repeal the EPA tailpipe regs, another third source of compliance credit revenue for Tesla and other pure EV automakers (Rivian, Lucid). So all 3 regimes are under attack and likely goners (Cali waiver most plausible to survive). Plus no more tax credits! Bad for Tesla & USA
Will the Trump EPA try to just repeal the EPA tailpipe regs with..nothing..? Or leave them at the MY2026 level? Too early to know? Standards are required under the CAA
When do you think they will successfully repeal the EPA?
Am I reading that wrong? Does it come into effect as soon as Trump signs the damned thing?
It does say that meaning it applies almost to the entirety of Tesla’s 3d qtr.
• $7,500 federal tax credit ends after Sep 30, 2025. • Regulatory credits in the US end tomorrow. The Big Beautiful Bill cancels both of them.
the regulatory credits end tomorrow. but is that effective through the beginning of the model year (circa 9/2024)?