Stellantis (an alliance of FIAT-Chrysler and PSA Peugeot-Citroen) will refuse to buy CO2 carbon dioxide emissions from Tesla, the head of the multinational holding, Carlos Tavares, said in an interview with the French newspaper Le Point.
PSA's electric and hybrid vehicles will allow Stellaantis to meet EU maximum CO2 limits as early as 2021, Tavares said. That is, the concern no longer feels the need to buy quotas from Tesla.
The practice of emission quotas is used in the US and the EU. In Europe, according to the latest Euro-6d eco-standard, from January 2021, the average level of CO2 emissions in the context of newly sold cars should not exceed 95 g per 1 km of run. If automakers do not fit into the limits, then they are fined large sums. However, there is an opportunity to avoid fines by buying emission limits from those companies that fit into the environmental requirements with a margin. Since Tesla only makes and sells electric vehicles, it does not use emission quotas itself, and sells them to manufacturers that do not fit into the limits.
FIAT-Chrysler, which has been part of Stellantis since 2021, was the largest buyer of allowances from Tesla - from 2019 to 2021, it acquired them for $ 2.4 billion. In the same period, Tesla reported revenue from the sale of "carbon credits" for $2.365 billion. Tesla’s net profit from the third to the end of the first quarter of 2021 amounted to $1.408 billion. Thus, it was through quotas that the company covered a loss of almost $1 billion from its core business (production and sales of electric vehicles). In other words, having lost this side income, Tesla runs the risk of losing money again. However, independent experts believe that there will be another buyer instead of Stellantis - the demand for quotas is now very high.
Tesla may become unprofitable again (Stellantis is to blame)
