The once-reliable river of emission-credits cash Tesla
A report in Europe today showed the Renault had grown its electric car (EV) sales beyond the point of self-sufficiency, and now had its own EV emissions credits for sale.
That could be a cruel blow to Tesla, which expected $1 billion in emission-credit revenues this year, and more to come.
Without the emission-credit revenues, Tesla would never have been able to claim four consecutive quarters of GAAP profitability this year.
Tesla soaked up $594 million in credit revenues in 2019 and $419 million in 2018, and emissions credits made up around seven percent of its total revenues in Q2 this year.
The world’s third-biggest auto-making alliance, Renault counts Nissan and Mitsubishi among the brands under its control and was the world’s biggest EV maker until the arrival of the Tesla Model 3.
It is pooling its emissions credits with both brands, which gives them huge EV volumes from the Renault Zoe and the Nissan Leaf. So far this year, 11 percent of Renault’s passenger car sales in Europe have been EVs.
According to a report by the European Electric Car Report, Renault now has so much confidence in its ability to meet its EU7 emissions targets that it has thrown open invitations to join its CO2 emissions pool to other auto makers.
In a document published by the European Commission, Renault has given a