Tang Weishi: Stellantis can achieve EU emissions targets without buying Tesla points this year.

Tang Weishi, chief executive of Stellantis, said the company hopes to achieve its carbon dioxide emissions target in Europe this year without buying environmental credit points from Tesla, according to foreign media reports.

FCA bought about 2 billion euros ($2.4 billion) of European and US carbon credits from electric car maker Tesla between 2019 and 2021. In January, Stellantis was created by the merger of PSA and FCA.

Tang Wei really accepted the French weekly "French opinion" (Le Point), said: "PSA has brought electric technology to Stellantis, and we will meet the carbon dioxide emission regulations as early as this year." Therefore, we do not need to buy EU carbon dioxide points, and FCA no longer has to share emission pools with Tesla. " If necessary, the company will consider working with Tesla in other regions in the future to achieve the lowest compliance fees.

A spokesman for Stellantis said the company was in discussions with Tesla about the financial implications of terminating the emission pool agreement. "with the merger of PSA and FCA, Stellantis will be able to meet the EU carbon dioxide emissions target for 2021 without opening up passenger vehicle emission pools with other automakers," a spokesman said.

Tesla will lose hundreds of millions of dollars

Tesla's decision to win points over emissions and fuel economy standards and sell them to other non-compliant carmakers will cost the company hundreds of millions of dollars. In 2019, FCA and Tesla signed an agreement to share emission pools to comply with EU carbon dioxide regulations.

Selling environmental credits to competitors is a financial lifeline for Tesla, which usually accounts for a large or all of the company's profits (when electric car sales break even). In the first quarter of this year, Tesla made a profit of $518 million from the sale of points, with a net profit of $438 million. Last year, the company sold nearly $1.6 billion in points worldwide.

This year, EU regulations require all carmakers to reduce carbon dioxide emissions from private cars to 95g gamma, or face hefty fines. The European Commission (European Commission) will soon put forward proposals for further tightening of European regulation, with carbon emissions targets likely to be as low as less than 43g/km by 2030.