Tesla's recent financial disclosures reveal that Elon Musk's lobbying efforts against EV-friendly regulations have resulted in a $1.4 billion loss in revenue due to reduced regulatory credits, and his political activities have also damaged Tesla's brand and sales globally. Despite this, Musk plans to extract up to $1 trillion from Tesla shareholders through stock grants, further risking the company's future.
Rivian's shares declined as the company lowered its profit outlook due to increased costs from tariffs and the loss of revenue from regulatory credits, amid policy changes under President Trump that have impacted EV makers' earnings and financial stability.
Tesla's revenue from selling regulatory credits is expected to plummet due to recent US legislation, potentially leading to significant financial losses for the company as these credits have historically been a major revenue source, especially during its early years and periods of low profitability.
Tesla faces significant risks to its revenue from regulatory credit sales due to potential policy changes and political actions that could eliminate or reduce the market for these credits, which have historically contributed billions to Tesla's profits amid declining vehicle sales and policy shifts.
