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What 'regulatory credits' are — and why they're so important to Tesla - TL;DR CNBC

What 'regulatory credits' are — and why they're so important to Tesla

Publishing timestamp: 2021-05-18 07:24:47


Summary

Governments incentivize automakers to develop electric vehicles by offering regulatory credits. Tesla profits from selling these credits, but investor Michael Burry has taken a $534 million short position against Tesla, betting that its reliance on regulatory credits is a red flag. Other automakers, like Stellantis, may no longer need to buy credits from Tesla, potentially impacting Tesla's profits.


Sentiment: MIXED

Tickers: VOW3-DETSLA

Keywords: tesla inctechnologyunited statesbusiness newstransportationelectric vehiclesgovernment regulationsvolkswagen agautos

Source: https://www.cnbc.com/2021/05/18/tesla-electric-vehicle-regulatory-credits-explained.html


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