Gerrymanderer2 Wrote:
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> Damn you have a super hard on for Elon Musk don't
> you sir? lmao! Thank God he's a world renowned
> success or you may have been right.
Nope, I'm just right and you're full of hypocritical shit.
The only reason that his company exists is because of the credits. The only reason that he made a profit in recent quarters was that he sold off a bunch of them.
Quote
Tesla's ZEV Credits - Accounting Tomfoolery Meets Regulatory Shenanigans
Summary
Tesla recently reported a Q3 GAAP profit of $22 million thanks to ZEV credit sales of $139 million, together with an estimated $15.5 million in other regulatory credits.
While other regulatory credits are relatively stable from quarter to quarter, ZEV credits arise when a car is sold but they don’t impact assets or revenue until Tesla resells them.
That makes ZEV credits cost-free margin on demand and creates a fertile environment for accounting tomfoolery.
The ZEV credit scheme implemented by California's Air Resources Board unfairly discriminates between ZEV manufacturers by awarding credits based on vehicle range instead of emissions abatement potential.
Due to the obvious regulatory shenanigans, California’s ZEV rules fail to achieve, or even serve, their statutory mandate and must be rewritten by numerate adults.
I was unimpressed when Tesla Motors (NASDAQ:TSLA) reported a Q3 GAAP profit of $22 million thanks to $154.5 million in "Green Credits." After all, I first saw Tesla's Green Credit gambit in Q1-13 when it reported a surprise GAAP profit of $11 million thanks to $85 million in Green Credits. Since then, the huge quarterly variations have been a frequent source of amusement.
Tesla earns GHG and other regulatory credits as it manufactures cars. So its quarterly revenue accruals for GHG and other regulatory credits are quite stable in the $15.5 million range.
Tesla also earns ZEV credits every time it sells an electric car in California or one of nine other States that have adopted California's ZEV regime. Those credits, however, have no impact on Tesla's asset values or earnings until Tesla sells a block of ZEV credits to another automaker that needs them. At that point, the proceeds flow directly to gross margin with no related costs. The ZEV credits are cost-free margin on demand that can easily be used to manage earnings.
On the purchase side, he can tell you himself how much of po folks money rich folks get to buy them:
https://www.tesla.com/support/incentives