Official emissions reports from the European Union or participating automakers

Automakers Join Tesla's Emissions Pool to Avoid EU Fines, Tesla to Earn Over €1 Billion

Jan 8, 2025, 04:05 PM

Several major automakers, including Stellantis, Toyota, Ford, Mazda, and Subaru, have announced plans to form an emissions pool with Tesla to comply with the European Union's stricter CO2 emissions regulations set for 2025. This strategy allows these companies to collectively account for their emissions, thereby avoiding potential fines that could reach up to 15 billion euros, according to the European Automobile Manufacturers' Association (ACEA). Tesla, as the leader of this pool, is expected to earn over €1 billion from this arrangement, as reported by UBS analysts. The move comes as a response to the EU's new rules, which reduce the permitted emissions for cars to 93.6 grams of CO2 per kilometer in 2025, dropping further to 49.5 grams by 2030. A separate pool is being formed by Mercedes-Benz, Volvo, Polestar, and Smart, indicating a broader industry trend towards such alliances to meet regulatory demands.