Tesla could lose billions in revenue as Trump administration weighs eliminating a key regulatory credit loophole

• Senate Republicans are proposing the elimination of penalties for not abiding by certain fuel efficiency standards. These penalties would render regulatory credits, an incentive for auto companies to abide by the standards, essentially useless. Tesla relies on these credits for a chunk of its revenue, racking up $2.67 billion from them in 2024.

As Tesla stock sputters following CEO Elon Musk’s feud with President Donald Trump, the EV maker is facing yet another threat from the administration.