The Tesla Secret That Exposes Elon Musk’s Whole Game

The Tesla Secret That Exposes Elon Musk’s Whole Game

  • 21.03.2025 10:09
  • newrepublic.com
  • Keywords: Tesla, Elon Musk

Elon Musk's Tesla profits heavily from selling carbon credits, exploiting regulatory loopholes to boost its finances. Despite his image as an anti-government figure, Musk relies on these government subsidies, highlighting how the wealthy exploit public systems for personal gain while undermining social programs.

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Estimated market influence

Tesla

Tesla

Negativesentiment_dissatisfied
Analyst rating: Neutral

The article discusses Tesla's exploitation of regulatory credits to boost its finances, which is seen as a negative influence on the market and government programs.

DOE

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Analyst rating: N/A

DOE is involved in gutting social programs under Trump and Musk's leadership, negatively impacting public welfare.

Context

Analysis of Tesla's Regulatory Credit Business and Market Implications

Key Facts and Data Points

  • Regulatory Credits Contribution: In the first nine months of 2024, a significant portion of Tesla's net income came from selling regulatory credits to other automakers that failed to meet emissions standards.
  • Carbon Credit Exploitation: Tesla earns billions by exploiting California’s Zero Emission Vehicle (ZEV) mandate and federal CAFE standards, allowing it to sell credits to gasoline-dependent automakers like Ford and GM.
  • Stock Price Dependency: Tesla's empire hinges on its stock price, which is propped up by these regulatory credits. A drop in stock value could destabilize the company.
  • DOGE Influence: Through Dogecoin (DOGE), Musk is influencing policies that favor billionaires while cutting social programs, exacerbating economic disparities.

Market Trends and Business Impact

  • Competitive Dynamics: Tesla's strategic advantage lies in its ability to generate revenue from regulatory credits, making traditional automakers dependent on it. However, this reliance makes Tesla vulnerable if regulations tighten or competitors adopt cleaner technologies.
  • Declining Stock Performance: Tesla's stock dropped nearly 40% in 2024 due to declining sales, battery tech lag, and investor concerns over Musk's leadership.

Regulatory and Strategic Considerations

  • Government Influence: Musk's role in the Department of Government Efficiency (DOGE) allows him to manipulate policies, ensuring tax breaks for the wealthy while slashing social benefits.
  • Systemic Exploitation: The article highlights a broader pattern where oligarchs exploit government programs for personal gain, rigging systems against the working class.

Long-Term Effects and Industry Implications

  • Potential Collapse: If regulatory standards change or automakers reduce reliance on credits, Tesla's financial model could collapse.
  • Broader Economic Impact: The critique underscores a systemic issue where wealth extraction by the elite accelerates economic inequality, threatening social stability.

Conclusion

Tesla's business model, while innovative in exploiting regulatory loopholes, raises significant ethical and market concerns. Its dependence on government credits highlights vulnerabilities in both its financial structure and the broader economic system. Addressing these issues requires regulatory reforms to ensure equitable policies and prevent further concentration of wealth among oligarchs.