Producing cars isn’t the only way to make a profit as a car company – sometimes it’s what you don’t produce that sells.

A new report from Motor1 claims Tesla will earn an estimated US$1 billion (AU$1.6 billion) of profit in 2025 from selling offset emissions credits to its competitors in Europe and elsewhere.

Companies such as Toyota, Ford, and Stellantis – the parent company of 14 car brands, including Alfa Romeo, Jeep, Maserati, Peugeot, and Ram, among others – which have relatively few electric models are forced to buy emissions offset credits, as their fleets are above the mandated output set by authorities.

By buying the credits, the companies can lower their reported emissions – avoiding large regulatory fines.

The report claims Tesla has already generated an estimated US$9 billion (AU$14.4 billion) profit since the business began from just selling credits.

Analysts predict a car manufacturer would need to have 20 per cent of its line-up as electric models to meet averages set by government authorities.

However, while carmakers are continuing to expand their electric-car line-ups, demand for battery-powered cars appears to be slowing in some markets – not helped by reduced government incentives.

Australia recently introduced the New Vehicle Efficiency Standards, which will require car companies locally to meet ever-tightening tailpipe emissions targets.