Tesla earned $1.79 billion from carbon credit sales last year, as disclosed in its Q4 2023 and annual financial report, bringing its total earnings from such credits since 2009 to nearly $9 billion. Tesla’s carbon credits are generated by its clean energy operations, which include producing electric vehicles,operating a solar panel installation business and selling energy storage systems.
These operations generate carbon offset credits by reducing greenhouse gas emissions. Tesla sells these credits to other firms, such as automakers, that struggle to meet emissions standards set by regulatory bodies.
Tesla’s regulatory credit sales have increased by an average of 36% year over year since 2013. In 2021, Tesla’s carbon credit revenue was nearly $1.5 billion. In 2023, Tesla reported a revenue of $554 million from the Q3 sale of carbon credits, which is a 94% increase year-over-year.
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And Tesla has opened its Supercharger network to owners of other electric vehicles in North America, and is expected to earn $30 billion on that deal. Tesla is executing a multi-play strategy around its One Oasis of EV vehicles.
The One Oasis Strategy is a business strategy concept that suggests that a company’s best product can help other products in the business. The strategy is based on the idea that if a product drives key investments, it can help other products in the business. The other products would then feed from the best product, and the company would flourish overall.
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