EV maker Tesla (TSLA) could earn over €1 billion in compensation this year from automakers needing help to meet the EU’s strict carbon emission rules, according to UBS. This could be achieved by pooling its electric vehicle fleet with manufacturers like Toyota (TM), Stellantis (STLA), and Ford (F), which would allow these companies to average out fleet emissions. UBS analysts noted that Volvo (VLVLY) could receive up to €300 million in a similar arrangement with Mercedes-Benz (MBGAF).
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EU automakers need to decide whether to pay penalties, pool with rivals like Tesla and China’s BYD (BYDDY), or sell EVs at a loss as government subsidies for plug-in cars fade. Unsurprisingly, some lawmakers have urged the EU to reconsider its CO2 policies by warning that the current approach could weaken European manufacturers.
Stellantis Surprises Analysts
On the other hand, Stellantis joining Tesla’s pool…
