For years, Tesla has raked in billions from selling excess greenhouse gas emission credits to other automakers looking to offset their environmental impacts.
According to South Korea news reports, the South Korean Ministry of Environment has finally given Tesla the regulatory green light to start trading its coveted carbon credits domestically. It’s a decision that could open up a new revenue stream for the EV leader worth hundreds of millions of won.
Specifically, Tesla is said to have secured authorization to sell up to 200 billion won (around $155 million) worth of tradable emission rights in South Korea this year alone.
The South Korean approval follows a recent update to the country’s emissions laws that had previously barred Tesla’s electric vehicles from qualifying for trading credits locally.
While the exact reasons behind the initial exclusion were never fully clear, it effectively cut Tesla out of a lucrative emissions market that other major automakers like Hyundai and Kia were able to freely participate in.
All that is changing now thanks to the new regulations – and Tesla is wasting no time cashing in. Tesla’s reportedly banked $1.78 billion in profit from global emissions credit sales in 2022 alone.
With South Korea’s valuable new market unlocked, expect Tesla to double down on maximizing its regulatory windfall while continuing its disruptive transition to sustainable transport.