Tesla’s carbon credit sales are making headlines again as it reached a new record in 2022. The company has been generating revenue from the sale of carbon credits for at least 8 consecutive quarters, with a 47% y-o-y jump in Q4 carbon credit sales. These credits are a way for companies to offset their carbon emissions by investing in renewable energy and other carbon reduction projects. Tesla has also been selling carbon credits to other automakers. In 2019, the company made headlines when it reportedly earned USD357mn from the sale of carbon credits to other car companies that did not meet emissions standards set by the California Air Resources Board. Tesla has seized the net zero market through many revenue streams including vehicles, solar installations and carbon credits. However, the rise of Tesla’s carbon credits sales over the years has proven a steady contribution to revenues and profits.

Source: carboncredits