Is Elon Musk Nuts? by SIGNYM

REAL WORLD EVENT DISCUSSIONS

Is Elon Musk Nuts?

POSTED BY: SIGNYM
UPDATED: Thursday, July 24, 2025 18:00
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Tuesday, July 22, 2025 7:18 PM

The Joss Whedon script for Serenity, where Wash lives, is Serenity-190pages.pdf at https://www.mediafire.com/two

A big problem for Tesla isn’t getting much attention

By Chris Isidore | 10:12 AM EDT, Tue July 22, 2025

https://www.cnn.com/2025/07/22/business/tesla-regulatory-credit-sales-
revenue

For years, Tesla has earned billions of dollars from its competitors just for selling electric vehicles. But that windfall is about to go away, just when the company may need it the most.

Regulatory credit sales have been a huge source of revenue for the automaker, which currently faces a sales and profit slump. Legacy automakers purchase credits from Tesla to keep selling gas-burning cars that would otherwise violate emission regulations and cost them a fine.

But the Republican tax and spending bill passed earlier this month removes that financial penalty for automakers, meaning they will no longer have any incentive to purchase these regulatory credits from Tesla.

The loss of such credits hasn’t gotten nearly as much attention as the blowback to Tesla CEO Elon Musk’s alliance, then battle, with President Donald Trump or the elimination of the $7,500 tax credits for EV buyers. But removing those regulatory credits from Tesla’s balance sheet could spell disaster for the company’s financial future, perhaps even resulting in ongoing losses.

According to a recent note from analysts at William Blair and Co., the automakers “that fail to meet standards no longer incur fines, eliminating market demand for Tesla’s credits.” The analysts expect Tesla’s regulatory credit revenue to fall by 75% next year and disappear completely by 2027.

That will “result in a direct hit to profitability (for Tesla),” the note said.

Tesla did not respond to a CNN’s request for comment on the change in regulatory credit sales.

Until now, the US — like many governments — has had a credit system to incentivize auto companies to meet environmental regulations. It awarded credits to auto companies that met emissions standards and imposed financial penalties on those that didn’t. For automakers that primarily sell gasoline-powered cars, they could buy credits from automakers that sell low-emission vehicles, like Tesla, to avoid fines they otherwise would have to pay.

For Tesla, regulatory credit sales alone have brought in $10.6 billion since 2019. There are some quarters, like earlier this year, where credit sales exceeded the company’s total net income — meaning the company would have lost money without them.

And early in its history, when Tesla was still ramping up production of electric cars, the regulatory credits were crucial for keeping the lights on during a severe cash crunch.

“These regulatory credit sales are the reason that Tesla exists today,” said analyst Gordon Johnson, one of the harshest critics of Tesla on Wall Street.

For most of the last four years, the company has reported net income beyond its regulatory credit sales, even as the credits themselves brought in billions of dollars. But its profit margins have been getting thinner after peaking in early 2022, making the credit sales more important.

But the loss of the credit sales is just one of many problems at Tesla. The company reported a record drop in sales in its last two quarters due to increased competition for EVs and backlash from some buyers to CEO Elon Musk’s political activities. Tesla reported a plunge in profitability in the first quarter of this year and is forecast to report another steep drop in second-quarter results due on Wednesday.

The credits sales might not end immediately if legacy automakers honor their long-term contracts with Tesla. But Johnson says that some automakers may try to get out of those credit purchase contracts early.

He predicts that Tesla’s credit sales could vanish as quickly as the third quarter of this year or the start of 2026. That, he said, could cause Tesla to start reporting quarterly net losses once again.

“Without regulatory credit sales, Tesla loses money in its core business,” he said.

The Joss Whedon script for Serenity, where Wash lives, is Serenity-190pages.pdf at https://www.mediafire.com/two

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Thursday, July 24, 2025 3:20 PM

SECOND

The Joss Whedon script for Serenity, where Wash lives, is Serenity-190pages.pdf at https://www.mediafire.com/two

Elon Musk with a straight face: Tesla Robotaxi will cover half of US population by end of the year

By Fred Lambert | Jul 23 2025 - 3:09 pm PT

https://electrek.co/2025/07/23/elon-musk-with-straight-face-tesla-robo
taxi-will-cover-half-us-population-end-year/

Electrek’s Take

This is laughable. Who believes that? How can Elon say that with a straight face when Tesla only has a joke of a system that requires supervision at all times? For context, Tesla currently only operates in a little over half of Austin, Texas.

This is ridiculous. The lies are becoming increasingly larger and more brazen.

The Joss Whedon script for Serenity, where Wash lives, is Serenity-190pages.pdf at https://www.mediafire.com/two

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Thursday, July 24, 2025 3:33 PM

THG

Quote:
Originally posted by 1kiki:

Speaking of the Mars trip - I hope people realize it'll be the last trip of their lives. The cosmic rays will get them.

Will not happen

Neil Tyson's Perspective on Mars

Neil deGrasse Tyson has expressed skepticism about the feasibility of human missions to Mars, citing the planet's inhospitable conditions and the lack of a compelling reason for such a venture. He believes that unless there is a geopolitical push or a significant shift in interest, the idea of sending people to Mars will not happen. Tyson's views are in contrast to Elon Musk's ambitions, which he finds to be a poor value proposition due to the high costs and potential risks involved. Tyson's perspective is that the return on investment for such a mission is unlikely, and it would require a significant investment from venture capitalists.

Wow, I agree with 1kiki...

T

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Thursday, July 24, 2025 5:02 PM

SECOND

The Joss Whedon script for Serenity, where Wash lives, is Serenity-190pages.pdf at https://www.mediafire.com/two

Quote:
Originally posted by THG:

Wow, I agree with 1kiki...

T

Elon Musk said that he believes that one day, traveling to Mars would cost less than $500,000 and possibly even less than $100,000. The cost of moving to Mars, according to Musk, would be "low enough that most people in advanced economies could sell their home on Earth and migrate to Mars if they wanted."

https://info.designatronics.com/blog/the-colonization-of-mars-a-what-c
ost

Is Elon Musk Nuts? Yes. The qualifier Musk uses, "he believes one day," doesn't mean he is even a little sane. Musk will be certifiably nuts until someone (it won't be him or anyone dumb enough to work for Musk) builds the technology that is simulated by a Firefly-class spaceship as seen on the TV show Firefly.

The Joss Whedon script for Serenity, where Wash lives, is Serenity-190pages.pdf at https://www.mediafire.com/two

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Thursday, July 24, 2025 6:00 PM

SECOND

The Joss Whedon script for Serenity, where Wash lives, is Serenity-190pages.pdf at https://www.mediafire.com/two

Elon Musk Loses $12 Billion In Wealth Overnight As Tesla Bets Future On Robotaxis

By Erin Marquis | July 24, 2025 1:37 pm EST

https://www.jalopnik.com/1921111/elon-musk-loses-12-billion-in-wealth-
overnight/

According to Musk, the company's infant robotaxi service, which recently began operations in Austin, Texas, will cause an avalanche of profits late next year when Tesla robotaxis will fully reach half of Americans.

Well, not to defecate in anyone's decaf, but that ain't happening. Of all of Elon Musk's pie in the sky promises, this one rings the most hollow. Tesla's stock price following the disastrous call reflects that maybe, just maybe, the market finally knows Musk is in a corner, and out of ideas.

The Joss Whedon script for Serenity, where Wash lives, is Serenity-190pages.pdf at https://www.mediafire.com/two

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