Canada and the U.S. are at odds over trade policies, with tensions running high. Canada is also not pleased with Elon Musk’s Tesla for filing for expiring incentives. However, Canada’s regulations could benefit Tesla by requiring zero-emissions vehicles to make up a percentage of vehicle sales by 2026, 2030, and 2035. Tesla generates profits from selling zero-emissions credits, with Canada potentially becoming a major buyer of these credits, boosting Tesla’s revenue. Tesla investors may find some positivity in this unexpected turn of events.
In Canada, automakers could face penalties for missing regulatory targets on zero-emissions vehicles. Tesla, a major seller of credits, could benefit from automakers buying these credits to avoid penalties. This revenue from credits could help Tesla rebound from a drop in global vehicle deliveries. While this opportunity may be positive for investors, it doesn’t fundamentally change Tesla’s investment thesis.
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Read more at Nasdaq: 1 Reason Tesla Investors Should Actually Thank Canada