Friday, October 7, 2022
News Tesla will Gain Billions by Helping Other Automakers Comply with Emissions Laws

Tesla will Gain Billions by Helping Other Automakers Comply with Emissions Laws

Tesla is earning billions to help its competitors

  • Tesla has entered pooling deals with many automakers

  • Jaguar-Land Rover will be helped by Tesla

  • The company’s new Berlin factory was, in a way, funded by FCA

Emissions rules around the world require the total emissions produced by cars sold by each manufacturer to be under a certain limit in order to avoid fines. These regulations are particularly strict in Europe.

Many automakers are struggling to avoid fines related to their corporate average fuel consumption and CO2 emissions, but not Tesla, since its entire fleet is composed of electric vehicles that don’t cause the type of pollution punished by this system.

Since Tesla sells a very high, and increasing, number of electric cars around the world, it is very attractive to other automakers who want to enter a pooling deal.

Pooling deals allow multiple automakers to group their sales together to have their emissions tested.

This is very interesting to companies which sell a lot of larger vehicles that create large amounts of pollution, such as JaguarLand Rover (JLR) and Formerly FCA.

Tata Motors, the company which owns the Jaguar and Land Rover brands has announced a pooling deal with Tesla in order to comply with the European emissions laws.

This allows JLR to pay Tesla to have its sales compiled with its own and thus avoid penalties that reached $48 million USD last year.

These types of deals have already earned Tesla $1.15 billion USD in the first nine months of the year. Analysts have even advanced that the company’s new Factory in Berlin was funded by FCA before the company exited the pooling agreement following its merger with France’s PSA group to form Stellantis.

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