Yes you are understanding that correctly. For producing EVs, they get credits from the federal government. I don’t know the exchange rate – e.g., how many EVs per credit.
Then, Tesla turns around and sells these credits to buyers, usually other companies. Companies buy these credits from Tesla to comply with regulations requiring certain environmental outcomes, and credits count towards these outcomes.
In theory this type of program incentivizes and rewards companies who invest in the technology(is) tied to these credits, in this case EVs. In practice it’s a way for other companies to comply with renewables regulations without actually doing anything to meaningfully reduce their impact and footprint (other than buying credits)
Yes you are understanding that correctly. For producing EVs, they get credits from the federal government. I don’t know the exchange rate – e.g., how many EVs per credit.
Then, Tesla turns around and sells these credits to buyers, usually other companies. Companies buy these credits from Tesla to comply with regulations requiring certain environmental outcomes, and credits count towards these outcomes.
In theory this type of program incentivizes and rewards companies who invest in the technology(is) tied to these credits, in this case EVs. In practice it’s a way for other companies to comply with renewables regulations without actually doing anything to meaningfully reduce their impact and footprint (other than buying credits)