Things could have been so much worse for this past quarter. In a period when profit fell 45%, the electric carmaker benefited from a potent weapon for improving its income statement: regulatory credits. A record amount, equal to more than half of Tesla’s second-quarter profit, was attributed Tuesday to the sale of these credits to rival automakers that use them to meet emission rules. The money, essentially pure profit, isn’t technically a subsidy. Tesla rather benefits from government programs—such as in California—that are aimed at pushing the development of electric and other green vehicles. The latest payday arrived as Musk reiterates that he is in favor of eliminating government subsidies to encourage the development of electric vehicles and pushes for the return to the White House of Donald Trump, who has pledged to reverse EV policies intended to nurture the industry in the U.S. Tesla’s ability to make popular EVs—so many that it earns regulatory credits to sell to rivals around the world—also comes as Musk is talking about how he views his company not as a simple automaker, but as an artificial-intelligence company developing autonomous, or driverless, cars and humanoid robots. https://www.wsj.com/business/autos/...p-fuel-tesla-profit-c9887cdf?mod=hp_lead_pos3
On the plus side, Musk has many characteristics of Edison. But far more traits of P.T. Barnum -- and that is the risk investing in Tesla.
Credits yepppp. This has been the earnings booster for years. Without these Credits tesla would have ever never entered into the trillion dollar market capitalization it once had, in fact the stock would probably be under 30 bucks!
Still whining about that? The credits are there for any car maker meeting emission standards and penalizes any car maker not meeting the standards. There are clear health and environmental reasons to cut pipe emissions that aren't tied to favoring Tesla over other car companies.
The irony of this all is that Edison, who wanted to power the nation with DC, somehow stole Nikolai Tesla's idea of AC and made it his own "invention". And now Musk is using the name Tesla to create cars running on DC, which was Edison's original idea for powering the nation. You cannot make this shit up.
Edison did not "steal" the idea of AC. AC was patented by Westinghouse and Edison's General Electric bought the patent license. And no, DC is not good to "power the nation" because of much higher transmission losses for DC vs AC. DC is perfectly good for powering an electric motor, though.
Anyway, DC is making a technological comeback and several projects are underway running DC power over long distances. https://www.cencepower.com/blog-pos...age DC power lines,than high-voltage AC lines.
Brilliant. Try again... "...If the cost of transmission infrastructure is not taken into consideration, DC electricity is the superior option..." Try again next decade. Sooner or later you will be of the same mind as Thomas Edison.
Who is a decade behind? https://www.bechtel.com/projects/australia-asia-powerlink/ https://www.dnv.com/article/2023-was-a-pivotal-year-for-HVDC/#:~:text=These behemoth tenders overshadowed what,dominated by three European manufacturers.