And half of Tesla's revenue comes from EV credits, which are set to end in September of this year.

What happens when EV subsidies end? Tesla is not breaking even. They will be hemorrhaging money without EV incentives.

For Tesla's Q1, people were saying "oh, you just have to wait for the new, refreshed models". But now they're out, and STILL nobody is buying them, despite EV sales increasing by 20%.

What now?

>>28532154 (OP)
Well maybe Musk should not have installed a President that is blatantly pro petrol industry and hates electric cars.

Just maybe. You reap what you sow.

>>28532154 (OP)
>And half of Tesla's revenue comes from EV credits
That's not how tax credits work. The EV tax credit was only $7500 as well which is not even close to half the cost of any of the Tesla models. Prior to 2024 it could not be used to reduce the price of the car and even after 2024 it only is a reduction based on how much is left over after what would apply to your taxes for the year.

>>28532348
I don't think that's what OP meant by "EV credits" anon. They aren't talking about the 7.5k EV rebate that goes to consumers. It's about CAFE credits.
Previously, other car manufacturers would have to buy CAFE credits from Tesla to avoid paying EPA penalties because their ICE cars are inefficient. Each car company is issued some number of CAFE credits and the more efficient your cars are the more credits you get. So naturally Tesla was getting a fuckton and was making half their money by simply selling these credits to other companies like Ford and Chevy. I'm not exactly sure how the system worked but basically it was cheaper for these companies to buy credits from Tesla than it was to pay the increased fines from the EPA or make their cars more fuel efficient.
Well the Trump admin and the BBB just reduced CAFE penalties to 0. So as soon as that goes into affect there's gonna be no reason to buy those credits from Tesla anymore. And sure, the next admin might reinstate CAFE, but that won't be for another 3 years at least. Tesla has been making half their revenue by selling these credits, not from selling cars, so you can imagine what will happen if a major company like this loses half of their income lol.

>>28532423
The BBB eliminating CAFE fines went into effect immediately upon being signed into law. Tesla already took a massive hit from it. What OP is referring to as "which are set to end in September of this year" are the EV Tax Credits. That is what ends in September of 2025. CAFE fines are already gone.

By the way revenue from CAFE was only a portion of Tesla's income. You can look up the numbers for yourself:

2024: https://digitalassets.tesla.com/tesla-contents/image/upload/IR/TSLA-Q4-2024-Update.pdf
2025: https://www.tesla.com/sites/default/files/downloads/TSLA-Q2-2025-Update.pdf

>>28532438
>was only a portion of Tesla's income
Yes you're right that's my bad. I meant half of their profit (I think around 40%?) was coming from selling those credits. Not overall revenue.

The 7.5k credit was obviously helping them because it allowed them to price their vehicles more aggressively but it's probably nowhere near 50% of their total revenue. Honestly I think Tesla's one of the few EV companies that's been "honest" in their pricing in the sense that their cars don't necessarily NEED the EV credit (MSRP is already pretty fair) compared to some other companies (Slate). Still glad the credit is ending because it was one big grift.

If I'm Elon I'm shitting bricks right now. Half of Tesla's profits are gone thanks to the BBB CAFE stuff, they no longer have the ability to undercut other brands' vehicles using the tax credit, and most importantly, China has been absolutely crushing it in the EV market for the past 5ish years. Chinese EVs are cheaper, more luxurious, faster, and have twice the range compared to their american counterparts. It's only a matter of time before a Chinese company makes a US subsidiary or even a US manufacturer leases with Xiaomi or at least uses their patents to make some insane EVs.

The market has already reacted, poorly, today.

hijacking this thread?l
what made ev so easily bricked aside from the battery? it's literally just a coiled copper wire & magnet

>model refresh

Honestly can't tell any difference between them and a first year of same model, probably why.

>>28532480
Crazy that Elon gave millions to Trump to get him re-elected and this is what he gets for it in return.
Maybe they’ll have to give Tesla customers what they actually want now?
>LIDAR
>stalks
>rain sensors
>new models
>rear doors that don’t trap you inside in case of fire

>>28532154 (OP)
>What happens when EV subsidies end?
Don't worry. Donnie will give him subsidies again. Probably even better than before.

>>28533013
After Elon called Drumpy a pedophile rapist? I don't think so. He's still saying Drumpy is on the Epstein list on Xitter.

>>28533024
That's just a show for you retards to believe in.
You think Donnie made xAi the official ai of his cabal when he hates Elon?

>>28533037
$200M is a paltry sum compared to the $500B (BILLION) Sam Jewman was asking for.

>>28532999
And it's already up to 320 today. Remember when people said Tesla was over when it dropped to 220 because everyone hated him with Trump? Yeah good times.

$322 a share btw