Tesla’s future looks promising with the potential for its robotaxi service to add over $1 trillion in value by 2026. However, the company faces a challenge that could impact a $2.76 billion revenue source. Federal regulatory credits in the US are expected to be eliminated, affecting Tesla’s profitability and growth opportunities.
Electric car stocks have benefited from regulatory credits, which are earned by selling low-emissions vehicles. Tesla has sold billions in credits to other automakers. The elimination of federal credits in the US will impact Tesla’s revenue and profits, making growth more challenging. This change will not kill Tesla but will affect its future growth prospects.
Despite the potential impact of regulatory credit eliminations, Tesla remains a strong investment opportunity. While US federal credit programs may be eliminated, state programs and international sales will remain intact. Tesla’s profitability heavily relies on regulatory credit sales, making growth initiatives more challenging in the future.
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Read more at Nasdaq: Prediction: Tesla Might Lose This $2.76 Billion Revenue Source That Is Nearly 100% Profit