Summary
- Automakers are looking to pool carbon emissions with Tesla to comply with EU rules on CO2 emissions
- UBS analysts predict Tesla could collect over $1 billion from other automakers this year
- Automakers looking to pool emissions with Tesla include Stellantis, Toyota, Ford, Mazda, and Subaru
- Tesla could earn compensation exceeding €1 billion if it monetizes its CO2 position
- UBS analysts find it surprising that Stellantis is pooling with Tesla due to previous statements from CEO Carlos Tavares
Article
Several automakers are considering pooling carbon emissions with Tesla to comply with the European Union’s 2025 rules on CO2 emissions. According to analysts from UBS Group AG, this deal could result in Tesla collecting over $1 billion from other automakers this year. The automakers that are looking to pool CO2 emissions with Tesla include Stellantis, Toyota, Ford, Mazda, and Subaru. Additionally, Volvo, Polestar, and Smart are reportedly planning on pooling their carbon emissions with Mercedes-Benz. Any other automaker that wishes to join Tesla’s pool would have until February 5 to submit their application.
In a report published by UBS analysts led by Patrick Hummel, it was noted that Tesla could potentially earn a substantial amount of compensation from its pooling deal in the EU. The analysts stated that Tesla’s compensation could exceed €1 billion if it monetizes its entire long CO2 position. However, it is uncertain whether Tesla’s pool is already full, or if they can accommodate more automakers. The analysts also mentioned that Stellantis pooling with Tesla was surprising, as CEO Carlos Tavares had previously indicated that the automaker would aim to comply with EU rules organically.
The pooling of carbon emissions with Tesla involves automakers signing a non-disclosure agreement and providing data on their CO2 emissions to Tesla. It is important for automakers to comply with the EU’s rules on emissions, and pooling with Tesla could be a way for them to reach their targets. The potential financial benefits for Tesla from these pooling deals are significant, as they could earn a substantial amount of compensation from other automakers. This pooling arrangement may also help Tesla improve its overall financial position.
The deadline for automakers to submit their applications to pool carbon emissions with Tesla is approaching, and it is essential for them to comply with the EU’s regulations on CO2 emissions. This pooling deal could have a significant impact on the automotive industry as a whole, as it could help automakers collectively reach their emission targets. The potential revenue for Tesla from these pooling agreements could further strengthen their position in the market. As more automakers consider joining Tesla’s pool, the impact on emissions reduction efforts in the EU could be substantial. Overall, this pooling arrangement signifies a unique collaboration between Tesla and other automakers to address environmental challenges and regulatory requirements.
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