Secret cash of the day. Or how GM and FCA keep Tesla afloat.

[67Monaco]

Bloomberg - Are you a robot?


For years, Tesla Inc. has hauled in revenue by selling credits to other carmakers that needed to offset sales of polluting vehicles to U.S. consumers. These sorts of transactions have largely been shrouded in secrecy -- until now.



General Motors Co. and Fiat Chrysler Automobiles NVdisclosed to the state of Delaware earlier this year that they reached agreements to buy federal greenhouse gas credits from Tesla. While the filings are light on detail, they haven’t been reported on previously. They also represent the first acknowledgments from carmakers that they’re turning to Tesla for help to comply with intensifying U.S. environmental regulations.



The deal with GM will come as a surprise to those who thought years of sales of plug-in hybrid Chevrolet Volts and all-electric Chevy Bolts would leave the largest U.S. automaker in the clear with regard to regulatory compliance. But while sales of those models have put GM in a position where it doesn’t need extra credits today, demand for its battery-powered vehicles are dwarfed by its gas-guzzling trucks and SUVs. And the company wants to bank the credits for future years when emissions rules get tougher -- especially if a Democrat beats President Donald Trump in 2020.

 

[Welder guy]

IMO the whole carbon credit scheme is a scam. It’s just another Tax for a electric car company that would not make it on its own. Now it doesn’t matter what vehicle you buy from GM or Chrysler you end up supporting Elon Musk. I would not be a bit surprised if a few other car companies are buying credits from Tesla. My rant of the day.

 

[Welder guy]

This isn’t the end of the Tesla cash cow yet.Their stock just hit a new low of $178/share on June 3rd ,down from a high of $379 on August 7 2018. That’s one massive financial red flag , at least to me anyway.

 

[Mike66Chryslers]

This is not much of a secret IMO. I read years ago that a chunk of Tesla's revenue came from selling carbon credits to other automakers. I'm sure it's spelled out clearly if you read Tesla's financial statements too, though not necessarily disclosing which automakers were buying them. I knew FCA was buying them because I read that in the news a long time ago too. Didn't know about GM.

 

[BigblueC]

IMO the whole carbon credit scheme is a scam. It’s just another Tax for a electric car company that would not make it on its own.

I completely agree. This whole electric car/Tesla relationship feels forced to me, and just like a fart, if you have to force it, it's going to be **** in the end.

This is not much of a secret IMO. I read years ago that a chunk of Tesla's revenue came from selling carbon credits to other automakers.

I thought that I had read something along those lines a while back.

 

[Rwc]

So honest Elan sells carbon credits to other car companies, and the end user funds the whole scheme. Just like when Obama was elected, you can see the sea levels receed.but of course the whole climate change story is all true.

 

[commando1]

The truth of the matter is ANY manufacturer can buy and sell credits to one another. And they don't need to be in the same industry.
There are brokers out there ready to deal today! Hurry for best selection,