https://www.cnbc.com/2020/07/23/teslas-sale-of-environmental...
https://www.cnbc.com/2020/07/23/teslas-sale-of-environmental...
https://pbs.twimg.com/media/E0ES_LuX0AED-eo?format=png&name=...
It's worth a review if you think the emission credits point is a substantial criticism of their business model. Also, bear in mind that they are a growth company, and are building two major factories concurrently (Austin, Berlin). If they didn't have emission credits as part of the revenue blend, they might slow down the growth a bit as a result. The point being that taking away emission credits would not necessarily mean they would elect to be not profitable.
but nothing absurd. Note that trying to compare 2020 data will obviously be extremely wonky.
On the scale of Tesla, that feels like a tiny amount - for which they'd dip into their war-chest and not slow anything down at all?
> sales of regulatory credits to other auto makers to help them meet emissions mandates, which carry a 100% profit margin, reached $518 million. That accounts for nearly 100% of Tesla’s $533 million in pretax income
it sounds like "almost all" would be a reasonable description.
Profit and expenses are choices; the fact that a firm puts all its revenue into SSG&A and R&D does not mean that they can't be profitable. If Tesla's revenue decreased by $533 million, they would probably still target $300-400 million in profit by adjusting their spending. They would do that because even at a lower revenue it still benefits them to report profit, and that benefit is still there even if they spend less on other things.
If a $533 million decrease would not lead to $0 profit, then it doesn't make sense to say that their profit comes from credits. It only makes sense to say that 7% of their revenue comes from credits, and that a significant (but not all, and probably less than half) part of their profit comes from credits.
As an long term investor I don't care about profits each quarter for a company like Tesla.
Other countries round the world are designing different CO2 reduction strategies, often without the ability to trade credits.