Did Donald Trump's EV policies put Tesla's revenue stream at risk? Here's why the company's lucrative side hustle is now under threat

Donald Trump has recently vowed to scrap electric vehicle targets, which could become a major problem for Tesla, which is also in the business of selling regulatory credits to automakers that haven't sold enough EVs to meet emissions rules, according to a Business Insider report. Using this business tactic, Tesla was able to generate a whopping $2.8 billion in the previous year itself, but now this revenue generation model may take a hit as Trump wants to do away with the electric vehicle targets altogether.

Tesla is currently one of the biggest sellers of electric vehicles in the United States but has also been making money off the cars that its rivals have not been able to sell.

Even though Elon Musk has been able to become President Trump's 'first buddy' at the White House, that has not helped Tesla out through this problem. Therefore this rather lucrative side hustle, which generates billions in extra revenue for the EV giants may vanish soon, as per Business Insider.


It is noteworthy that Tesla made $1.8 billion from this EV regulatory-credit business in 2023, a figure that quickly rose to $2.8 billion in 2024, which is a steep year-on-year rise, for any business that is just a secondary side hustle for a company.

FAQs:

Is Elon Musk now a part of Donald Trump's cabinet?
Yes, Elon Musk is now a part of Donald Trump's cabinet as the head of the Department of Government Efficiency, also known as DOGE.

Is Elon Musk the CEO of Tesla?
Yes, Elon Musk is currently the chief executive at Tesla, and has been leading the company to amazing records through the years.