On June 3, 2019, Bloomberg exposed the hidden sources of Tesla’s cash. The news site revealed that General Motors Co. and Fiat Chrysler Automobiles purchased federal greenhouse gas credits from the said automotive and energy company.
While most of these transactions remain in the dark, Bloomberg notes that the disclosure of these companies to the state of Delaware has allowed the public a glimpse to the riches surrounding Tesla’s success. The disclosure is reportedly the first of its kind, acknowledging that vehicle manufacturers are working closely with Tesla to comply with the environmental regulations set by the United States.
Tesla Raking in Millions
Business Insider reports that since 2012, Tesla Inc. has raked in millions of dollars from selling its regulatory credits. Today, the news site notes that the company has brought in more than a whopping $1.7 billion.
According to Tech Crunch, the company started selling its regulatory credits to car manufacturers who needed to adhere to stricter environmental laws implemented by the United States.
Bloomberg states that while Tesla’s business is limited to the United States, possible partnerships may also occur in Europe, with the continent slated to enforce stricter emissions regulations for the year.
Revealed State Filings
In separate accounts, both General Motors Co. and Fiat Chrysler Automobiles revealed to the state of Delaware that they are buying greenhouse credits, also known as ZEV credits.
Tech Crunch reports that Fiat Chrysler Automobiles had four separate filings that revealed its agreements with Tesla, some in 2016, 2018, and 2019.
Meanwhile, Tech Crunch notes that General Motors Co.’s first purchase has been made primarily to prepare for a more uncertain future surrounding regulatory practices. While a spokesperson acknowledges that it does not need ZEV at the moment, the company is keen on buying ZEV to cushion against “future regulatory uncertainties.”