TSLA · 10-Q · 2026Q2 · Full report

Automotive Regulatory Credits Trend

Tesla, Inc. · 2026-07-23 · Importance 59 · Surprise 82

Automotive regulatory credits revenue decreased $293 million (67%) in the three months ended June 30, 2026 versus the prior year quarter and decreased $508 million (49%) for the six months year‑over‑year. Management attributes fluctuations to supply of credits, regulatory changes, production and sales dynamics and restrictions on certain government credit programs. Reduced regulatory credit revenue is a meaningful gross profit headwind versus the prior year and contributed to the quarter’s automotive gross margin dynamics. Tesla also notes the demand from other automakers for credits affects realizable revenue from this source.