By Dhirendra Tripathi
Investing.com – Tesla (NASDAQ:TSLA) stock was up more than 2% in Tuesday’s premarket trading as the company’s second-quarter results threw up not only $1.6 billion in adjusted profit but another pleasant surprise - a falling reliance on selling carbon credits to make money.
The company made $354 million from selling environmental credits, 17% less than a year ago.
Tesla, being a manufacturer of electric vehicles and a contributor to the green energy ecosystem, earns regulatory carbon credits and sells these to other companies which rely on fossil fuels for their energy needs.
For many years, Tesla made good money from selling carbon credits. But as other companies also shift to renewable sources, they need to buy fewer of those credits from companies like Tesla.
The share of revenue from carbon credit sales in Tesla’s total revenue more than halved to 3% in the June quarter from 7% a year ago.
Tesla’s automotive revenue almost doubled and income from operations soared more than four-fold, helped by record sales of its electric vehicles. The company delivered 201,250 vehicles during the quarter and upheld its full-year forecast despite the global chip shortage that has disrupted the plans of most automotive groups this year.
The company also took an impairment of $23 million on account of its Bitcoin holdings.