Tesla's profits from government paperwork
Jaguar and Honda pay Tesla millions for credits to pretend to meet E.U. rules governing emissions. It doesn't reduce the emissions from the vehicles at all.
In the U.S., GM, Ford, Chrysler, and other car companies sell gas-guzzling vehicles that consumers want and then buy credits from Tesla to pretend they reduce their carbon footprint to comply with California or U.S rules. The emissions from the vehicles are exactly the same, but who cares?
Tesla buyers get a $7,000 subsidy from the federal government, but the company also makes a killing from selling pieces of paper: $1.15 billion in the first nine months this year. And now the company has a one-trillion-dollar market value.
Stylish but subsidized.
John Kerry, Obama, Bill Gates, Mark Zuckerberg, the Royal Family, Oprah, and others live in multiple mansions, fly in private jets, ride in gas-guzzlers, and have yachts as they lecture others about their carbon footprint and pretend to care. Sometimes they even pay to plant trees and buy electric cars as they pretend to reduce their carbon footprint.
Should rich people get tax credits for buying electric toys to pretend they care about their carbon footprint?
Tesla could also see a "year end revenue boost" from also helping Jaguar Land Rover meet EU rules governing emissions, according to a new report by Bloomberg.
Tesla is reportedly going to be pooling all of its EVs that it sells in the EU with vehicles from the Tata Motors-owned manufacturer, a new report, citing a filing on the European Commission's website, says. JLR is following in the footsteps of Honda, who also reached a pooling agreement with Tesla about a year ago, the report says.
JLR had set aside $48 million for fines from failing to meet EU emissions rules last year. This year, it said it expects to meet its targets.
It'll help continue a longstanding tradition for Tesla of generating billions in revenue from helping other auto manufacturers meet emissions regulations. Tesla's top line benefitted to the tune of about $1.15 billion in the first nine months of this year from this practice.
Photo credit: lobrpeis, Pixabay license.
To comment, you can find the MeWe post for this article here.