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Market Chatter: Tesla Reportedly Seeks Entry to US Renewable Credit Market to Profit From Biden Administration Zero-Emission Push

05/12/2021 03:56

07:49 AM EDT, 05/12/2021 (MT Newswires) -- Tesla (TSLA) is looking to enter the US renewable credit market to profit from the Biden administration's push for zero-emission goals, Reuters reported, citing two unnamed sources familiar with the matter.

The company is one of at least eight with pending applications at the Environmental Protection Agency related to power generation and renewable credits, the sources told the news outlet, which said the EPA lists pending applications with some details but not firm names.

Tesla's application will likely be tied to generating electricity associated with biogas, Reuters said.

The Biden administration plans to review the EPA applications and detail how electric vehicles can qualify for tradable credits under the Renewable Fuel Standard this summer, the news outlet said, citing the sources.

If successful in the review, Tesla would generate D3s, the most lucrative credits, which trade at a significant premium to traditional ethanol credits, Reuter said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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