In the heart of challenge for electrification of the European automotive sector, aunexpected alliance could become the key to salvation for some of the major producers, including Stellantis, Toyota, Ford, Mazda and Subaru. With increasing pressure to reduce CO2 emissions, these giants they risk heavy sanctions from the European Union if they fail to meet the stringent limits set for 2025. In this context, however, a unexpected solution: Tesla, Elon Musk's house, which offers a way out thanks to the sale of emission credits.
Despite calls from some manufacturers to review the regulations, the European Union has made its position clear: the rules will remain in force. The Climate Commissioner, Wopke Hoekstra, reiterated that there will be no changes to the regulatory framework, leaving little room for those who hoped for an easing of sanctions.
And so, on the horizon, Tesla emerges as a strategic ally for struggling producers. Being an all-electric company, Tesla does not generate direct CO2 emissions e He then accumulates credits that he can sell to those who are unable to comply with the limits set by environmental regulations. In this way, it offers the possibility of buy emission credits to offset the CO2 emissions of other producers, thus avoiding heavy fines.
With this move, Elon Musk could really become the savior of the European automotive industry, providing a crucial solution for companies struggling to meet environmental targets. A savior, however, with a well-stocked wallet: the sale of emissions credits has in fact represented a significant source of revenue for Tesla, with earnings that reached $2023 billion in 1,79.
The European Union's very severe fines
Le European regulations on CO2 emissions for 2025 are very severe. To meet the 15% reduction targets from 2021 levels, automakers will need to significantly increase sales of electric vehicles. Experts suggest that at least 20% of car sales will have to consist of zero-emission vehicles, but in Europe the Electric car market is still growing, with a market share of 14% in 2023. In the face of this stagnation, manufacturers who fail to meet the targets they risk heavy fines, which according to ACEA (European Automobile Manufacturers Association) could amount to up to 15 billion euros.
Fines are calculated based on the amount of CO2 emitted over the limits, with a fine of 95 euros for each gram of CO2 added for each vehicle sold. situation is becoming more and more critical for traditional automakers, which are failing to take off with electric, especially in the face of Chinese competition.
Tesla to the rescue of European manufacturers, here's why
To face this scenario, some major car manufacturers, including Stellantis, Toyota, Ford, Mazda and Subaru, have decided to join Tesla in an emissions-sharing system. Tesla, which produces only electric vehicles, has the opportunity to sell credits to offset emissions of CO2 from other manufacturers. In this way, companies struggling with electric can offset their emissions by purchasing credits from Tesla.
Stellantis has confirmed its participation to this system, declaring that the initiative will help the group to meet its 2025 emissions targets, without having to accelerate the transition to electric too much in a European market still in the process of adapting. Participation in the “pool” managed by Tesla will help Stellantis avoid finesand, allowing it to meet emissions limits without having to accelerate the transition to electric vehicles too quickly, a complex challenge in a European market that is not yet fully enjoying electrification.
Tesla leads the emission credit market
Tesla she is not new to this type of operation. In 2020-2021, during the previous lowering of emissions targets, other car manufacturers, such as Volkswagen, Suzuki and Jaguar Land Rover, had already had to rely on emission credits, but they failed to always meet their targets, accumulating fines of over 500 million euros.
For 2025, Tesla has First official “pool” launched, to which they have approximately 30% of car manufacturers have joined in Europe, including Stellantis, Toyota, Ford, Mazda and Subaru. The document published by the EU Commission lists a fifteen participating companies, including Toyota Motor Europe, Toyota Motor Corporation, Toyota Gazoo Racing Europe, Ford Werke, Ford Motor Company, Mazda Motor Europe and Subaru Europe. Stellantis figures with as many as eight entities, which include Stellantis Auto sas, Automobiles Peugeot sa, Automobiles Citroen sas, Stellantis Europe spa, Fca Us llc (represented by Stellantis Europe), Alfa Romeo spa, Opel Automobile and Leapmotor Automobile Co ltd. Curiously, the Chinese electric vehicle manufacturer, of which Stellantis is a partner, is represented by an Italian Srl: GreenKar Innovation srl.
La Pool participation is open until February 5, 2025, and other car manufacturers, such as Volkswagen and Renault, have already expressed interest in joining together to avoid sanctions.
January 7th was a second pool also announced, This time driven by Mercedes Benz, which has already attracted the participation of Volvo, Polestar and Smart, brands belonging to the Chinese group Geely.
The difficult transition to electric
Il switching to electric represents one of the tougher challenges for car manufacturers, especially for those with a long tradition in the production of internal combustion vehicles. Stellantis, for example, has already announced cuts in car production petrol and diesel, focusing more on electric. However, difficulties persist, especially due to strong competition from Chinese manufacturers, which have already consolidated a dominant position in the electric car market. The real challenge is not only to comply with environmental regulations, but also to be able to overcome a market that is struggling to find the right push for a complete transition to electric.
And in this situation Tesla is benefiting greatly, consolidating itself as a point of reference for the automotive industry in terms of emissions and credits.