Tesla's Sales Are Falling So Much That the Cash It Rakes in for Carbon Credits Is Under Threat

A number of major carmakers — including Toyota, Stellantis, Mazda, and Subaru — "pooled" their emissions with EV makers Polestar and Tesla earlier this year, in an effort to comply with tougher European Union carbon emissions rules. Put differently, the companies are hoping to meet yearly emissions targets by teaming up with EV companies, which have racked up an abundance of carbon credits — since their vehicles don't produce any carbon emissions like gas guzzlers. It's a clever accounting trick that allows makers of internal combustion vehicles to skirt around EU regulations and avoid hefty penalties. It's also a mutually beneficial agreement, with EV makers like Tesla making billions on emissions deals. Just last year, the company made a whopping $2.76 billion, representing a 54 percent increase in the income stream year-over-year. But as Politico reports, that source of revenue could quickly dry up in 2025. That's in large part thanks to Tesla CEO Elon Musk's extremely divisive ... Read full article.