How Tesla Is Helping Major Automakers Avoid Huge Fines
A coalition of major automakers is teaming up with Tesla to create a “Superpool” to meet the European Union’s stringent 2025 emissions targets.
The coalition includes Toyota, Stellantis, Ford, Mazda, Subaru, and Leapmotor. The new EU regulations require fleet emissions to drop from 106.6 grams of CO₂ per kilometer to 93.6 grams. By pooling their emissions with Tesla, these automakers aim to offset their excess emissions with Tesla’s cleaner fleet, narrowing the gap to within 4 grams of compliance.
Failure to comply with these regulations could result in fines totaling up to €15 billion ($15.5 billion).
According to Reuters, Tesla’s carbon credit sales have become a revenue stream, accounting for approximately 3% of the company’s $72 billion revenue in the first three quarters of 2024. However, Tesla’s declining European sales could somewhat reduce the effectiveness of the pooling strategy.
This is not the only emissions pool forming in Europe. Mercedes-Benz, Smart, Volvo, and Polestar have created a separate group to address their collective emissions, with Mercedes alone exceeding its 2024 target by 17.3 grams.
Other automakers, including Volkswagen, Hyundai, Kia, Honda, and Renault Nissan Mitsubishi, have yet to announce pooling plans despite being above their required targets.
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An experienced automotive storyteller and accomplished photographer known for engaging and insightful content. Michael also brings a wealth of technical knowledge—he was part of the Ford GT program at Multimatic, oversaw a fleet of Audi TCR race cars, ziptied Lamborghini Super Trofeo cars back together, been over the wall during the Rolex 24, and worked in the intense world of IndyCar.
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