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
Keywords: tesla inc, technology, united states, business news, transportation, electric vehicles, government regulations, volkswagen ag, autos,
Source: https://www.cnbc.com/2021/05/18/tesla-electric-vehicle-regulatory-credits-explained.html