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. For Tesla, regulatory credit sales alone have brought in $10.6 billion since 2019. He predicts that Tesla’s credit sales could vanish as quickly as the third quarter of this year or the start of 2026. “Without regulatory credit sales, Tesla loses money in its core business,” he said.