European automakers face hefty fines for not meeting CO2 reduction goals. To avoid these penalties, they can team up with companies that meet EU demands, a strategy Tesla has exploited to great success. The electric vehicle company has made billions from emissions deals, including a 54% year-over-year increase in 2024, but its sales and revenue are suffering as a result of Musk’s meddling in European politics.
Source: https://www.politico.eu/article/tesla-plummeting-sales-risk-emissions-credit-earning