Tesla raked in $518 million in revenue from sales of regulatory credits in the first quarter of the year,
helping the U.S. electric vehicle maker post another quarter of profit.
It’s not just the U.S. that has such a credit scheme. The European Union and China have similar rules.
In China, the regulatory credit requirements for automakers have been steadily increasing since 2019 and will continue to do so. Chinese regulations determine the amount of credit per vehicle based on a number of factors including the range of car.
Tesla will also earn these green credits in China, one of its most important markets — but one where it
ran into a slew of negative publicity last month.
Last month,
Reuters reported that a joint venture between German automaker
Volkswagen and Chinese state-owned manufacturer FAW, agreed to buy credits from Tesla in China.