Major carmakers including Toyota, Stellantis, Mazda, and Subaru have teamed up with electric vehicle (EV) makers Polestar and Tesla to meet European Union carbon emissions rules. The companies are pooling their emissions credits in an effort to comply with tougher regulations.
The move is also mutually beneficial, as EV makers like Tesla have earned significant revenue from these deals. However, the source of this income could dry up by 2025 due to Tesla’s declining sales and popularity.
Tesla CEO Elon Musk’s divisive remarks and actions, including two Hitler salutes during President Trump’s inauguration, have led to a significant drop in European sales. The company is already behind its 2025 emissions targets, despite a healthy increase in EV sales overall.
If Tesla fails to meet its promises, it may struggle to maintain its share of the carbon credit market. The International Council on Clean Transportation (ITCC) warns that Tesla’s problems are not due to waning demand but rather the company’s own issues with sales and competition.
Tesla dealerships have seen a surge in protests and vandalism, highlighting growing anti-Musk sentiment. The company’s outdated models and high pricing also pose significant challenges. As Lukasz Pajak, cofounder of German used car platform Cardino, notes, “The much bigger impact on Tesla is the fact that the models are outdated.”
Source: https://futurism.com/tesla-sales-carbon-credits-europe