Featured Image Credit: Christopher Furlong / Staff / Getty
One of Tesla's most lucrative money making measures is at risk of being shut down by US President Donald Trump, and it could end up losing the company just under $3,000,000,000 per year.
Elon Musk has become one of President Trump's closest allies, having spent a lot of time together during the election campaign trail. He has made significant donations to Trump's campaign, and utilized his ownership of social media platform X for political gain.
This has earned him a position as the head of the Department of Government Efficiency (DOGE) - tasked with 'cutting the fat' from the federal budget, alongside the president's keen ear, which many believed would benefit companies like Tesla and SpaceX.
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This was certainly reflected in the stock market too, as his companies saw significant value boosts post-election, but Trump's resurgence to power could actually see Tesla suffer a significant loss.
One of the electric vehicle company's biggest money makers in recent years has been the sale of regulatory credits to other car manufacturers. Federal EV targets indicated that car companies needed to sell a certain portion of electric cars relative to their gas counterparts, or make up for the numbers by purchasing equivalent credits from all-electric companies like Tesla.
Tesla made $1,800,000,000 from the sale of regulatory credits in 2023, and this rose significantly to a staggering $2,800,000,000 in 2024 - making what ended up being major automotive revenue loss look a lot better.
However, as reported by Business Insider, this lucrative 'side hustle' could be coming to an end as President Trump eyes plans to crap federal EV targets, eliminating the need for companies to purchase regulatory credits.
Targets set during the Biden administration indicated that 50% of all new vehicles sold should be electric by 2035, yet this could quickly be thrown out of the window in fresh executive orders signed by Trump.
This could very much spell danger for Tesla as the company also reported a sales decline for the first time in nearly a decade last year, and experts indicate that Musk's political associations - including accusations of a Nazi salute at the inauguration - could be harming the company's reputation.
You have to wonder whether Musk will use his political power to step in and amend these measures, as they are the opposite of what you'd imagine he'd want from the new administration.
Reports that Trump is growing frustrated with Musk's 'uncontrollable' actions could leave him in trouble though, as what initially seemed like a hugely beneficial position for Elon and his companies could end up coming back to bite him.
