Tesla Inc. posted strong quarterly results on Wednesday, with positive commentary from the management on the earnings call. But one particular data from its report signaled legacy automakers could be struggling with their transition away from internal combustion engine (ICE) vehicles.
What Happened
Tesla reported regulatory credits of $679 million for the first quarter, more than double from the previous quarter and a 31 percent jump from a year ago.
Regulatory credits are given by governments to automakers for producing green-energy vehicles, with a fixed amount of credits for each company to earn. Those deficient in the credits can buy from peers who have a surplus.
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