like zero emissions laws, so if you make a polluting car, you've got to make a clean one. And so a lot of manufacturers will sell what are known as compliance cars to comply with the regulations, but not necessarily a product that they're going to be aggressive or just not featuring in terms of a bottom line, how they plan to make money in the auto business. So you earn what are called credits, so zero emission credits. And you can satisfy your emissions requirements either by building a clean car or by buying the credits from someone else. So Tesla, since they only make electric cars, zero emissions, they have those credits they can sell. And that's been an important revenue. That's interesting. Because that's very high margin. It's a small part of their overall revenue, but the margins on that are 100%, essentially. And so that's certainly helping keep the finances afloat somewhat. And then there's also non-economic incentives. If you've ever driven in California, if you have an (19/45)
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