Get the latest tech news

A big problem for Tesla isn't getting much attention

For years, Tesla has earned billions of dollars from its competitors just for selling electric vehicles. But that windfall is about to go away, just when the company may need it the most.

But the Republican tax and spending bill passed earlier this month removes that financial penalty for automakers, meaning they will no longer have any incentive to purchase these regulatory credits from Tesla. And early in its history, when Tesla was still ramping up production of electric cars, the regulatory credits were crucial for keeping the lights on during a severe cash crunch. The company reported a record drop in sales in its last two quarters due to increased competition for EVs and backlash from some buyers to CEO Elon Musk’s political activities.

Get the Android app