Revered Portuguese businessman and Stellantis CEO, Carlos Tavares, is a shrewd operator. Therefore, it seems Tesla can continue to rely on carbon credit sales for a few years at least. Many car manufacturers will struggle to meet this with their emissions exceeding the regulatory limits. In fact, EU regulators aim to reduce emissions by 5% to 10% a year for the next decade. And we can expect continued tightening of emissions regulations throughout the EU in the coming years. While the majority of auto manufacturers are moving into carbon efficiency, emissions credits remain crucial to meeting the Paris agreement. Tesla $TSLA – Photographer: Milan Csizmadia | Source: Unsplash Much of this comes from the heavy investment in electric made by the PSA group prior to the January merger. That seems to be because Stellantis expects to achieve its CO2 targets in Europe this year thanks to the selling of its own zero-emission vehicles. To date, this move only affects European credit purchases. So far, the news hasn’t made much of a dent in the Tesla share price, so it doesn’t seem to have unnerved the market. Meanwhile Tesla’s total operating income for the year was $2.3 billion. At over 20% of the $1.6 billion in credit emissions sales reported by Tesla for 2020, that’s quite a shortfall for Tesla to make up. Stellantis is a major player in the auto industry and its contribution to Tesla’s EV credit buys came in at $350 million last year. The Stellantis Group now owns Fiat Chrysler, Jeep, Masserati, Alfa Romeo, and Peugeot to name a few. Stellantis is the relatively new name for the merger of FCA (Fiat Chrysler Automobiles) and Groupe PSA (Peugeot). Thereby allowing them to offset their poor results while Tesla can profit. The idea behind the credits is that Tesla is doing more than its fair share to combat climate destruction, so it can sell carbon credits to companies with high emissions. One of its prominent buyers is Stellantis (NYSE: STLA), which has just pulled the plug on any future buys. Famed electric vehicle maker Tesla (NASDAQ: TSLA) generates a sizeable amount of its profits from carbon credit purchases.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |