Tesla’s carbon credits revenue came in at $344 million in Q2, down 49% from $679 million in Q1, and a 3% decline from the same period in 2021.
The regulatory credits made up 1.7% of its total gross margin for the quarter, down from 2.9% the previous quarter.
Tesla has made $5.1 billion since 2017 through selling certified carbon credits. The credits are sold to other automakers to help them comply with their emission regulations and avoid huge fines. What’s more, the credits also represent the carmaker’s effort in eliminating its carbon footprint.
