FILE PHOTO: A man walks near a logo of Tesla outside its China headquarters at China Central Mall in Beijing, China July 11, 2018. REUTERS/Jason Lee/File Photo
SAN FRANCISCO (Reuters) – Tesla booked $189.5 million in automotive regulatory credits in its third quarter which helped contribute to profitability, the company said in a quarterly filing on Friday.
Last month Tesla disclosed $52 million in “zero emission vehicle” credit sales, but the quarterly filing includes all regulatory credits, including the ZEV credits.
Higher gross margins that exceeded Tesla’s guidance in the quarter were helped by lower costs and an “increase in regulatory credits, which have no associated costs,” Tesla wrote.
The new disclosure shows that 44 percent of the net profit Tesla reported last week was attributed to previously undisclosed regulatory credits.
Reporting by Alexandria Sage; Editing by David Gregorio