Stellantis, the automotive company that emerged from the merger of PSA and FCA, will no longer buy carbon credits from Tesla. In the past, the Italian group (Fiat-Chrysler Automobiles) used the Californian electrical manufacturer to meet European standards for CO2 emissions.
Stellantis managing director Carlos Tavares said in an interview with Point that the switch to electricity is already in full swing and that the carbon dioxide emission limits will be met independently starting this year.
“That is why we do not have to use any CO2 credits in Europe. and FCA will no longer have a pool with Tesla or anyone, ”he added, while the group includes no fewer than 20 brands including Peugeot, Citroën, DS, Opel, Fiat, Alfa Romeo, Jeep, Dodge and Maserati.
Now that Carlos Tavares has led Peugeot and PSA in a smoother transition – based on the Peugeot 208’s 3-cylinder petrol engines and subsequent hybridization – he has to get into the electric race with Stellantis.
According to the group’s schedule, French battery production is expected from 2023. For its part, Renault also wants a new plant by 2025. PSA’s electric motors are currently imported from China and Japan.
Bad news for Tesla?
For Tesla, the end of the agreements with FCA and Stellantis won’t be so good news. On the contrary, it will mark a symbolic change in a trend that until then has served it well.
As a 100% electricity maker, the carbon credits he had in Europe were useless to him and it was very useful to him to resell them to other brands to increase his revenue.
With the exponential increase in sales, this activity will no longer be essential to be profitable. But even in the first quarter of 2021, the results showed that the sale of emission allowances was essential for them.
With $ 438 million in net income and $ 500 million in carbon revenue from carbon credits, Tesla would have been in the red of $ 62 million if it hadn’t found customers to sell its carbon credits.