Tesla sells emission free vehicle regulatory credits not carbon credits.
There is a mandate that some fraction of the cars made in the US be emission free. Companies can either follow the fraction exactly, or produce less emission free vehicles than required and buy credits, or produce more emission free vehicles than required and sell credits.
Tesla is in the 3rd category.
It’s an effective and correct way for the government to mandate a transition to emission free vehicles. They can progressively increase the fraction till all vehicles must be emission free.
It’s a perfectly fine source of income for Tesla. There’s nothing wrong with it.
Tesla consummers are essentially getting the money since Tesla is able to sell its cars cheaper thanks to it. Gasoline cars consummers are paying indirectly for it, since the car makers companies are increasing their price to cover the price of the credits.
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