That's is how Tesla makes $$$

[SGCM928]

Look like Elon Musk is taking a leaf out from LTA's COE scheme. $2.1 billion earned in 9 month just for doing nothing. 🦾🦿🦾 

@inlinesix I know you like to quote Tesla everytime when the topic of dealer's profits were raised. It's time to rethink if Tesla's strategy is sustainable in long term, especially with Trump at the helm.🥱

Over 40% Of Tesla's Profit Comes From Selling Regulatory Credits (InsideEVs)

• Tesla has made $2.1 billion this year by selling regulatory credits to automakers that haven't hit emissions targets.
• Credit sales account for 43% of the automaker's profit.
• If environmental standards get rolled back, that money may dry up.

These credits have long been a big part of Tesla's business. U.S. and other government standards require automakers to hit fleet-wide emissions targets. Companies that are above those targets must buy credits to bring down their average. They buy credits from companies like Tesla, which only makes zero-emissions vehicles, and other brands that are more efficient than required by law. This incentivizes companies to beat their targets, as it opens up a valuable revenue stream, while still providing leeway for those that can't or don't want to sell more efficient vehicles.

The credit-selling business was even more crucial to Tesla earlier on. Back when other automakers were struggling to get their EV programs off the ground, and Tesla was losing money on most cars it made, profit from regulatory credits was a lifeline. Many have argued it would have never survived without them.

 

On the other hand, Prabowo has a different vision. 🤣

Indonesia is revving up its ambition to have a national car. Can a weapons firm deliver? (CNA)

All senior government officials are to start using a car built by state-owned munitions company Pindad. This has stoked national pride, but analysts point to a long road ahead.

When Mr Prabowo Subianto arrived for his inauguration at the Indonesian parliament complex in Jakarta on Oct 20, he was seen using a white Toyota Alphard multi-purpose vehicle (MPV).

But by the time he emerged as Indonesia’s eighth president, a different ride was waiting for him at the lobby: a Maung Garuda. 

“(Mr Prabowo) is proud to be using Maung Garuda Limousine as his official car,” he said, as quoted by Detik news website. 

The president has also said that he wants Indonesia to be self-sufficient and push for a homegrown automotive industry, among other things.

“To be honest, in my heart, I refuse to accept that the world’s fourth (most populous) nation, a nation blessed by God with tremendous (natural) wealth... cannot produce its own cars, cannot produce its own motorcycles, cannot produce its own computers,” Mr Prabowo told a regional leaders’ convention on the outskirts of Jakarta on Nov 7. 

[inlinesix]

Our Tesla comes from GigaShanghai. Who cares about Trump

[SGCM928]

On 11/27/2024 at 9:06 AM, inlinesix said:

Our Tesla comes from GigaShanghai. Who cares about Trump

Your statement shows that you do not comprehend what the whole news article is all about. 

During his push for the White House, Trump has called climate change a “hoax” and “one of the great scams of all time” while vowing to delete spending on clean energy, abolish “insane” incentives for Americans to drive electric cars, scrap various environmental rules and unleash a “drill, baby, drill” wave of new oil and gas.

If Trump's administration delivers a more lax environmental rules for automakers, not only this key profit-drivers of Tesla (trading carbon credits) could go away, there will also be a drop in the demand for EVs, which could further hit Tesla's bottom line, and force Elon Musk to review it's pricing strategies in ALL market.

And did you just mentioned made-in-China? Have you figure out what will be the cost impact if Trump insisted on relocating all operations in China back to the US?

[inlinesix]

On 11/27/2024 at 11:07 AM, SGCM928 said:

Your statement shows that you do not comprehend what the whole news article is all about. 

During his push for the White House, Trump has called climate change a “hoax” and “one of the great scams of all time” while vowing to delete spending on clean energy, abolish “insane” incentives for Americans to drive electric cars, scrap various environmental rules and unleash a “drill, baby, drill” wave of new oil and gas.

If Trump's administration delivers a more lax environmental rules for automakers, not only this key profit-drivers of Tesla (trading carbon credits) could go away, there will also be a drop in the demand for EVs, which could further hit Tesla's bottom line, which will force Elin Musk to review it's pricing strategies in ALL market.

And did you just mentioned made-in-China? Have you figure out what will be the cost impact if Trump insisted on relocating all operations in China back to the US?

GigaShanghai don't export to America.

America has been facing a charging problem especially ppl who needs to do cross country travel. 

It is difficult to convince more American switching to EV.

When BYD Seal was launched in Singapore, it was cheaper than Model3.

Now, it is the other way (including BYD unrealistic rebate price).

Any price increase for Tesla will just mean that it will be more ex than BYD.

[Lethalstrike]

On 11/27/2024 at 11:07 AM, SGCM928 said:

Your statement shows that you do not comprehend what the whole news article is all about. 

During his push for the White House, Trump has called climate change a “hoax” and “one of the great scams of all time” while vowing to delete spending on clean energy, abolish “insane” incentives for Americans to drive electric cars, scrap various environmental rules and unleash a “drill, baby, drill” wave of new oil and gas.

If Trump's administration delivers a more lax environmental rules for automakers, not only this key profit-drivers of Tesla (trading carbon credits) could go away, there will also be a drop in the demand for EVs, which could further hit Tesla's bottom line, and force Elon Musk to review it's pricing strategies in ALL market.

And did you just mentioned made-in-China? Have you figure out what will be the cost impact if Trump insisted on relocating all operations in China back to the US?

I think Elon Musk isn't stupid. That's why he has been all chummy with Trump's recent campaign to get him on his side 😁

[Koster]

On 11/27/2024 at 11:36 AM, inlinesix said:

GigaShanghai don't export to America.

America has been facing a charging problem especially ppl who needs to do cross country travel. 

It is difficult to convince more American switching to EV.

When BYD Seal was launched in Singapore, it was cheaper than Model3.

Now, it is the other way (including BYD unrealistic rebate price).

Any price increase for Tesla will just mean that it will be more ex than BYD.

I noticed the pricing of Seal and Model 3 too. Seems like Seal is the more popular one.

[Carbon82]

The whole automotive world is now upside down, no thanks to the unrealistic push for BEV/ZEV.

Some gain big time, some loss big time, and the market is set for a major shake up, which is generally doing the traditional auto manufacturers a disfavour.

ZEV mandate has ‘fundamentally changed’ car industry, says MG

The government’s zero emissions vehicle (ZEV) mandate has caused a ‘fundamental shift’ to the UK’s automotive market and has led manufacturers to do ‘whatever they can’ to achieve electric car targets.

The ZEV mandate, introduced in 2024, requires car and van manufacturers to sell a certain percentage of new EVs each year otherwise they face steep fines unless they can trade credits with other manufacturers with surplus EVs. In 2024, firms are required to sell 22 per cent of electric cars and 10 per cent of electric vans, with some firms well on track to achieve or exceed the target, while others that currently sell few or no EVs languish far behind and face tough business decisions.

Pigounakis said: ‘In my lengthy career I’ve never seen a piece of legislation fundamentally change the way manufacturers design and engineer cars, bring cars to market, even down to pricing and distribution. It’s fundamentally changed the whole industry, and will carry on doing so if the ZEV mandate continues.’

“Growth in EVs this year is driven by Motability, driven by demos and in the main by manufacturers own registrations, and this is driven entirely by manufacturers doing whatever they can to hit the ZEV mandate they have.”

According to data seen by CAR Magazine, 25,500 more EVs have been sold on Motability this year than in 2023.

Pigoukanis said: ‘Motability has now decided they have too many EVs, and it’s making it very expensive for manufacturers to put electric cars on its fleet. That is not the channel it was.

‘There’s a very high rejection level amongst electric cars on Motability, and that’s down to the pressure manufacturers have put on their dealers to sell electric cars, so if a Motability customer comes in wanting a car, they’ve been talked into an EV that doesn’t suit their needs.’

‘I think every manufacturer now has far more cars than they’ve got customers for. So this massive turnaround in supply and availability has really developed over the last 14-15 months.

‘This year has also seen brutal discounting. This discounting is particularly prevalent in EV market, driven by oversupply and reduced demand as manufacturers scramble around to try and hit their ZEV mandate targets. Too many cars, not enough customers, and manufacturers trying to fix that with more aggressive and expensive consumer incentives in the marketplace. This situation of having more cars than customers isn’t going to go away.’