Tesla's sale of environmental credits help drive to profitability
Publishing timestamp: 2020-07-23 15:22:03
Summary
Tesla reported revenue of $6.04 billion in the second quarter of 2020, with $428 million coming from sales of regulatory credits. The company expects revenue from these credits to double in 2020 but decline over time. Without these credits, Tesla would not have been able to report four consecutive quarters of profitability, a milestone that qualifies it to join the S&P 500. Regulatory credit sales were greater than the company's free cash flow and net profit for the quarter. Tesla sells these credits to other auto makers to comply with environmental regulations. While Tesla expects credit revenue to double in 2020, they anticipate a decline in the future. Musk emphasized the importance of making Tesla's cars affordable and accessible to a broader base of drivers.
Sentiment: MIXED
Keywords: elon musk, stellantis nv, tesla inc, autos, business news, environment, technology, venture capital,