Tesla loses huge customer for emissions credits in Europe and the US

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In 2020, the European Union introduced strict new rules requiring automakers to average no more than 95 g of CO₂ per kilometer, with heavy financial penalties for companies that missed this target.

With diesel no longer a palatable option, some automakers pivoted to electric vehicles, and European EV sales skyrocketed as a result. Others, like Fiat Chrysler Automobiles (FCA), looked at their product pipelines and decided it would be easier to buy emissions credits instead. FCA entered into a deal with Tesla to count its battery EVs as part of its fleet. But last year, FCA merged with Peugeot to form Stellantis, in large part to gain access to a modern BEV platform.

That plan evidently worked, because on Tuesday Stellantis CEO Carlos Tavares told France's Le Point that starting next year, the company will meet its carbon target without help. "Thus, we will not need to call on European CO₂ credits, and FCA will no longer have to pool with Tesla or anyone," Tavares told Le Point.

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