How Tesla Made 9 Billion Euros Without Selling a Car

Now the second-largest seller of electric cars worldwide, Tesla has developed a lucrative business: reselling its CO2 quotas to its competitors.

The cynicism of this modern society is endless. While each automobile manufacturer is allocated, based on its production and range of cars, an annual CO2 quota, with penalties for exceeding it, Tesla saw an opportunity to make money by taking advantage of this mechanism. We are not far from the Canal+ series, Money and Blood…

As the exclusive manufacturer of electric cars, Tesla therefore has a surplus CO2 quota that it does not use. But rather than losing it, it has been selling its tons of CO2 on stock markets to the highest bidder for many years. These buyers prefer to purchase unspent tons of CO2 rather than pay fines for exceeding their quotas.

A business that will disappear?

In Tesla’s accounts approved in 2023, it is revealed that this CO2 resale business generated 1.8 billion dollars (1.6 billion euros). A lucrative income without even having to sell a single car. Since 2009, when this mechanism was implemented, Tesla is estimated to have earned nearly 9 billion euros!

However, the end of this game might be near for automakers. First because CO2 quotas are being reduced each year, but also because manufacturers are rapidly switching to electric vehicles. As a result, their average emissions decrease, reducing their need to buy tons of CO2 from Tesla. Finally, a new player has entered the market and operates in a similar way to Tesla: BYD. The world’s leading electric car manufacturer is also not using its quotas.

The rivalry between Tesla and BYD is now everywhere.

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