Tesla Losing Major Source of Profitability

Discussion in 'The BS Topic' started by The Champ, May 6, 2021.

  1. The Champ

    The Champ Veteran Member

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    Tesla Losing Source of Credit Revenue That’s Been Key to Profits

    Read more at: https://www.bloombergquint.com/business/tesla-will-lose-a-source-of-revenue-pivotal-to-profit-streak

    Stellantis (new owner of Chrysler) announced Wednesday it is exiting a European emissions-credit agreement with Tesla.

    Since the merger with the PSA group, Stellantis no longer needs to purchase European emissions credits saving the company about $360,000,000.00. Two thirds of that had been going to Tesla (about $240,000,000.00).

    Other automakers are also eliminating or reducing their need to purchase emission credits, so Tesla will be losing even more in the coming quarters.

    Notice how Tesla has failed to make a profit on the selling of their cars over the last 6 quarters.

    [​IMG]

    In the leading electric vehicle market in the world, Tesla hasn't sold a single vehicle in Norway in May and only sold a total of 9 in April.

    Puegeot (part of Stellantis) has sold 69 vehicles in Norway in May and 393 in April. Citroen (also part of Stellantis) has sold 46 vehicles in Norway in May and 166 in April.

    For reference - the top 3 sellingelectric models in April were the VW ID.4, the Audi E-tron and the Volvo XC40 with 1811, 775 and 612 respectively. In total, 8,859 new electric vehicles were sold in Norway in April.

    Looks like Tesla's "free lunch" is disappearing.
     
  2. Zstar

    Zstar Veteran Member

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    VERY interesting!
     
  3. danbrennan

    danbrennan Veteran Member Lifetime Gold Member

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  4. Mike N

    Mike N Administrator Staff Member Lifetime Gold Member

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    Rumor has it that Elon is bringing Danica aboard as a consultant to help boost Tesla sales.... better buy their stock while you can.

    :D
     
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  5. Rosster

    Rosster Veteran Member Gold Member

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    With their chief revenue stream disappearing why in the heck would you invest money now? With $300M in lost income to cover operating losses (and possibly more to come if other companies cancel agreements too) they will be bankrupt in a few years.
     
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  6. tom3

    tom3 Veteran Member

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    I get a kick out of the stock market experts, whatever they predict usually goes 180 degrees the other way over time.
     
  7. 1980RS

    1980RS Veteran Member

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    Tesla need to make a sports car with dual quad batteries for better performance. lol
     
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  8. Lowend

    Lowend Administrator. .a car, a man, a maraca. Staff Member Lifetime Gold Member

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    So - does this mean that FCA is going actually start building cars with better emissions? If that's the case, it sounds like the system is working
     
  9. Zstar

    Zstar Veteran Member

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    ^^^FCA no longer exists.
     
  10. Lowend

    Lowend Administrator. .a car, a man, a maraca. Staff Member Lifetime Gold Member

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    Let's put it this way: Dodge, Fiat, Chrysler and Jeep still exist...
     

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