Stellantis, the automotive group born from the merger between PSA and FCA, will not buy more carbon credits to Tesla. In the past, it was the Italian group (Fiat-Chrysler Automobiles) that took advantage of the Californian electric manufacturer to be able to comply with European standards linked to CO2 emissions.
Now that the transition to electric is well underway, Stellantis CEO Carlos Tavares said in an interview with Point that they “Will respect in an autonomous way carbon dioxide emission limits starting this year ”.
“Thus, we will not need to call on CO2 credits in Europe; and FCA will not have no more pool with Tesla nor with anyone ” he added, while the group includes no less than 20 brands including Peugeot, Citroën, DS, Opel, Fiat, Alfa Romeo, Jeep, Dodge and Maserati.
After leading Peugeot and PSA in a smoother transition – relying on 3-cylinder petrol engines on the Peugeot 208 and then on hybridization – Carlos Tavares is forced to enter the electric race with Stellantis.
In the group’s schedule, French battery production is expected from 2023. Renault, for its part, also wants a new plant by 2025. Currently, PSA’s electric motors are imported from China and Japan.
Bad news for Tesla?
For Tesla, the end of the agreements with FCA and Stellantis will not be such good news. On the contrary, it will mark a symbolic change of a trend who was doing him a good service until then.
As a 100% electric manufacturer, the carbon credits he owned in Europe were of no use to him and it was very useful for him to resell them to other brands in need to make increase revenue.
With the exponential increase in its sales, this activity will no longer be essential for it to be profitable. But again in the first quarter of 2021, its results showed that the sale of carbon credits was essential for it.
With a net profit of $ 438 million and $ 500 million in revenue related to carbon credits, Tesla would have finished in the red of $ 62 million if it had not found customers to sell its carbon credits.