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Started by Eoin Wilson
The discussion focuses on the revenue Tesla generates through the sale of Zero Emission Vehicle (ZEV) credits to internal combustion engine manufacturers. It examines how these credits function as a market mechanism for companies to meet government emissions regulations and the specific financial impact this has on Tesla's bottom line.
So I made a video about cap and trade markets, and I kind of want to dive a little bit deeper in terms of um kind of the EV versus internal combustion engine market. Um the government sets an emissions cap on like polluting vehicles, and obviously electric vehicles don't are zero emissions, and so they also give out zero emission vehicles, ZEV credits for uh a certain amount. It's not one per car, but it's like one per several thousand cars produced. Anyway, so Tesla, obviously, an big electric vehicle producer, has a ton of these ZEV credits. Um, and so they can sell these credits, much like…