In 2020, Tesla generated $1.79 billion in regulatory credit sales, thanks to the struggles of its competitors to sell enough electric vehicles to meet emission standards. Businesses in the US, Europe, and China regulate environmental standards to meet emission requirements. Since 2009, Tesla has earned almost $9 billion from these sales.
Tesla’s prediction that regulatory credit sales would dry up was proven wrong when the company recently announced increased profits from these sales. However, competition in the electric vehicle market remains fierce. Despite this, Tesla’s rivals are scaling back their EV plans, which has led to increased sales for the company.
One of Tesla’s biggest competitors is BYD, which overtook the company as the world’s top seller of electric vehicles early in 2021. Tesla did not immediately respond to requests for comments made by Business Insider.