What Happened: Ramanathan said in a post on LinkedIn that she made the “difficult decision” to leave a few weeks ago.
“Tesla has been more than a job: an all-consuming Mission demanding my time and efforts constantly as we closed deals to sell emissions credits to obligated parties (both automotive and oil & gas companies) across the world,” she wrote.
Talking about her plans, Ramanathan said that she would take a break for a few weeks before embarking on another job.
What Are Regulatory Credits: Regulatory credits are incentives awarded to automakers by governments for selling electric vehicles. Each company is supposed to have a minimum number of regulatory credits each year, failing which they have to buy from other companies that have excess credits.
Given that Tesla only sells EVs, they have excess credit which they sell to other companies for profit.
“We recognized record regulatory credit revenues in Q2 as other OEMs are still behind on meeting emissions requirements,” Tesla announced during its second-quarter earnings last week.
According to Tesla’s 10Q filing, the company has unsatisfied or partially unsatisfied contracts for the sale of regulatory credits worth $4.9 billion as of June 30. Of this whopping amount, $459 million is expected to be recognized in the next 12 months and the remaining over a period of time.
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