Tesla loses Toyota and Stellantis from EU CO2 pool, taking billions with them
6 hours ago
- #Tesla
- #CO2-emissions
- #EV-market
- Toyota and Stellantis are withdrawing from Tesla’s European CO2 emissions pool for 2026.
- Tesla’s regulatory credit revenue is shrinking globally, especially after the US eliminated its emission credit market in 2025.
- EU regulations allow automakers to join pools with zero-emission vehicle manufacturers like Tesla to meet CO2 targets.
- Tesla previously earned significant revenue from pooling agreements, including a $2 billion deal with Stellantis (formerly Fiat-Chrysler).
- For 2026, Tesla’s EU pool is reduced to Ford, Honda, Mazda, and Suzuki.
- Toyota is leaving the pool as it can meet EU emissions targets independently, aided by its hybrid-heavy lineup and expanding EV offerings.
- Stellantis is forming its own pool with Leapmotor, its Chinese EV subsidiary, to offset emissions without paying Tesla.
- Tesla’s regulatory credit revenue dropped from $2.76 billion in 2024 to $2 billion in 2025, with further declines expected.
- The elimination of the US emission credit market and relaxed EU targets reduce automakers’ urgency to pool with Tesla.
- Tesla acknowledges the decline in regulatory credit revenue, which was always a temporary business model.
- Increased EV competition is impacting Tesla’s sales globally, except in the US.
- Ford, Honda, Mazda, and Suzuki remain in Tesla’s EU pool, but their long-term participation is uncertain.