Tesla is making money off cars its competitors aren't selling

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Some of Tesla's $25.5 billion in second-quarter revenue came from the cars competitors didn't sell. Tesla, which sells only electric vehicles, always has an excess of credits. It's the advantage Tesla needs amid a slow start to 2024. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Advertisement Tesla's record second-quarter revenue was partly driven by something unusual: all the electric vehicles its competitors didn't sell. Elon Musk's electric car company has always been able to rely on under-the-radar revenue generation from selling its extra regulatory credits to car companies whose fleets don't meet emissions requirements. Because Tesla's vehicle sales are 100% electric, it always has an excess of credits — awarded to companies that surpass their regulatory requirements — and can sell them for a nice profit. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .