Elon Musk (Craig T Fruchtman/Getty Images)

60% of Tesla’s shrinking profit effectively came from regulatory credits

Why Elon Musk's crusade against government EV subsidies is a pretty baffling stance

7/25/24 11:29AM

Tesla’s latest quarterly profit shrank by nearly half from a year earlier, and regulatory credits revenues were equal to more than half the profit it did generate, the Wall Street Journal reported.

The electric vehicle company gets these credits at no cost from the government for building environmentally friendly cars and then sells them to other automakers who haven’t met regulatory requirements.

If we’re to assume there are negligible costs associated with the credits and that it's generally viewed as pure profit, here's how much of Tesla's profit those credits have accounted for over time:

Tesla has been criticized for how those credits could obscure its true profits, and make a bad quarter look better somewhat artificially.

The company’s reliance on those credits also makes CEO Elon Musk’s desire to eliminate government subsides as well as his pro-Trump stance seem like a liability. Trump has promised to end federal support for electric vehicles.

On the earnings call Thursday, Musk tried to minimize the impact a loss of EV tax credits would have on the company.

“I guess there would be, like, some impact. But I think it would be devastating for our competitors and would hurt Tesla slightly,” Musk said. “But long term, probably actually helps Tesla, would be my guess.”

Skydance Officially Closes Deal To Merge With Paramount

Paramount Skydance says its DTC streaming biz will be profitable this year

The studio reported its third-quarter earnings on Monday, the first since the Skydance takeover.

Max Knoblauch5h

“Grand Theft Auto” has been a gold mine — this latest delay had better be worth it for investors and gamers

Rockstar’s latest blockbuster now won’t arrive until late 2026, and the stakes couldn’t be higher.

Hyunsoo Rim12h

Nia Warfield11/7/25

Starbucks issues apology after viral “Bearista” cup meltdown

Holiday cheer turned into chaos this week for Starbucks after the coffee giant’s new “Bearista” holiday cup sent fans into a frenzy.

Dropped alongside its 2025 holiday menu, the $30 beanie-wearing glass bear tumbler sparked long lines, sellouts, and even in-store scuffles before Starbucks stepped in with an apology.

“The excitement for our merchandise exceeded even our biggest expectations,” the company said in a statement to People. “Despite shipping more Bearista cups to our coffeehouses than almost any other item this holiday season, the Bearista cup and some other items sold out fast.”

Within hours of launch, frustrated fans flooded Starbucks’ social media pages and even store hotlines. Some customers waited in line before dawn and others said their stores received only a handful of cups. In one Houston location, the craze even turned physical, with police reportedly called to break up a brawl. Meanwhile, the cup is already reselling on sites like eBay, with listings topping $600.

“We understand many customers were excited about the Bearista cup and apologize for the disappointment this may have caused,” Starbucks said. While in-store customers may be upset, investors seem happy about the viral hit, as the stock has risen over 3% on Friday.

If you’re still hoping for a Bearista at market price, that may not be on order: the chain didn’t disclose how many cups were made or whether a restock is planned.

Hyunsoo Rim11/7/25

Target tells workers to smile, wave, and greet shoppers if they come within 10 feet of them

Target just rolled out a new rule for store employees: “smile, make eye contact, and greet or wave” when a shopper comes within 10 feet — and if they get closer, within four feet, “ask whether they need help or how their day is going,” according to a new Bloomberg report.

Dubbed the “10-4 program” internally, the rule mirrors rival Walmart’s own 10-foot policy, formalizing behavior Target had previously only encouraged.