Thanks to the trading of CO2 quotas, Tesla could collect more than a billion euros. And for that, you don’t even need to sell a single car!
We already knew it: Tesla makes less money selling its cars than playing bank for other car manufacturers. And while the American brand, still number 1 in the world in electric vehicles, sold less in 2024, the sale of its CO2 credits to other manufacturers who need them will continue to provide it with a good income this year. Indeed, according to some analysts, Tesla could once again rake in more than a billion euros not by selling its new Model Y, freshly unveiled for China, but by reselling its excess CO2 quotas. Or when the misfortune of one person makes the happiness of others!
Buy “rights to pollute”
As a reminder, the CAFE standard requires car manufacturers not to exceed certain CO2 emissions thresholds across their entire fleet of vehicles sold. Threshold revised upwards in 2025 which basically requires manufacturers to sell at least 20% electric vehicles. Which may not be the case for everyone!
For its part, Tesla, which only sells so-called “zero emission” vehicles, has CO2 credit to spare. This is how a “pool” of automobile manufacturers was formed around Elon Musk’s firm with Stellantis, Toyota, Ford, Subaru and Mazda, which will pay a high price for “rights to pollute”. “Tesla’s remuneration could even exceed one billion euros if it monetizes its entire long CO2 position,” UBS bank analysts led by Patrick Hummel said in a report. Note that other manufacturers can join the game: they have until February 5 to submit their request and participate in this intellectual deception.
-Volvo teams up with Mercedes
Tesla would not be the only big winner in these CO2 credit sales. Volvo, notably thanks to the success of its small electric SUV EX30, and more broadly the Geely group and the Polestar and smart brands, could also garner interesting cash flow. Another “pool” was thus created with Mercedes in order to compensate for excess CO2 emissions. According to the same analysts, Volvo could receive up to 300 million euros thanks to this. As a reminder, Tesla has already raised more than $10.2 billion by selling its CO2 emissions credits over the last 15 years.. With exponential growth in recent years. The new tightening of the CAFE standard in 2025 will only be beneficial!
New or old, thermal or electric, the automobile has always thrilled me. Both behind the wheel and behind my screen, I talk about it with as much passion as possible!
