From Financial Modeling Prep: 2025-03-30 06:05:00

Stellantis will continue buying CO2 credits from Tesla in 2025 to meet EU emissions targets. Despite a grace period from 2025-2027, Stellantis still relies on Tesla’s credits due to low EV sales. Tesla’s lucrative credit business supports further EV expansion, benefiting both companies.

European carmakers face fines for not reducing CO2 emissions. Stellantis struggles with a 14% EV sales mix, below the EU’s 21% target. The EU’s grace period offers temporary relief, but Stellantis still buys credits.

Stellantis gains compliance flexibility but must accelerate EV adoption. Tesla benefits from a strong revenue stream from credit sales. European automakers may struggle to meet emission targets, increasing reliance on EV leaders like Tesla. The challenges of scaling up EV production persist.



Read more at Financial Modeling Prep:: Stellantis Extends CO2 Credit Purchases from Tesla Despite EU Regulation Shift