Elon Musk Tesla Car Sales Created Huge Profits From Carbon Credits Not Just Car Sales

3rd April 2025

Elon Musk is not just suffering from the drop in Tesla electric car sales. An important factor is his profits from sale of carbon credits heavily connected to the sales of the cars.

Elon Musk's Tesla earns significant revenue from selling carbon credits. These credits are part of regulatory programs designed to incentivize companies to reduce their carbon emissions. Tesla, as a manufacturer of electric vehicles, generates these credits because its products meet environmental standards. It then sells these credits to other automakers that produce fossil fuel vehicles and need to comply with emission regulations.

In 2024, Tesla reportedly earned a record $2.8 billion from trading carbon credits. This revenue has been an important contributor to Tesla's financial success over the years.

Any reduction in Tesla sales will have a significant affect on his carbon trading arm. This may be why the lower share price may be hitting hard with his shareholders and investors.

Not for the faint hearted but Carbon Credits are explained at Wikipedia
For information on Carbon Credits go HERE

Highland Council
The Highland Council has not explicitly focused on carbon trading as a primary strategy. However, it has been involved in initiatives that align with carbon reduction and sustainability goals. For instance:

The council has received Carbon Trust Standard Certification, which recognizes its efforts in reducing carbon emissions through energy management and performance plans.

It has also been part of the Carbon Reduction Commitment (CRC) scheme, which is a cap-and-trade program aimed at reducing carbon emissions among organizations.

While these efforts demonstrate a commitment to lowering emissions, they don't directly indicate active participation in carbon trading markets.

BUT
Scottish councils are indirectly involved in carbon trading through the UK Emissions Trading Scheme (UK ETS). This cap-and-trade system, which replaced the EU ETS after Brexit, includes participants from Scotland, such as energy-intensive industries and the power sector. While councils themselves may not actively trade carbon credits, they are affected by the scheme, especially in areas like waste management. For instance, rising costs of incineration for councils are partly linked to the UK ETS.