The conglomerate is looking to back out of a deal made with Musk's company.
Stellantis is slowly but surely getting its act together as a group. It has revealed its plans for a few of its neglected brands and is also planning to import a quirky Citroen EV for its Free2Move mobility service. Along with bringing in new EVs for rental, the company intends to sell 400,000 electrified vehicles this year.
With these developments and others, the conglomerate has now told a French newspaper that it no longer needs Tesla's help with meeting emissions targets. Stellantis currently buys excess CO2 credits from Tesla to reduce its own overall emissions rating, but as the company has improved since its inception in January, it no longer needs these credits.
According to a report from Automotive News, FCA (which is one half of the Stellantis collaboration with PSA Group) spent around $2.4 billion to buy European and US CO2 credits from Tesla over the 2019-2021 period. Stellantis CEO Carlos Tavares explains: "With the electrical technology that PSA brought to Stellantis, we will meet carbon dioxide emission regulations as early as this year. Thus, we will not need to call on European CO2 credits and FCA will no longer have to pool with Tesla or anyone."
Tesla earns billions from the tax credits it sells to other automakers, and in the first quarter, its credit revenue surged 46 percent to $518 million. In 2020, Tesla said that it recorded $1.6 billion in revenue from these credits alone.
A Stellantis spokesperson has confirmed that the company is in talks with Tesla about what kind of financial agreement can be reached if Stellantis stops buying the CO2 credits early, but Stellantis seems far more focused on the long-term effects of being able to meet its own targets.
The spokesman continued to say that "as a result of the combination of PSA and FCA, Stellantis will be in a position to achieve CO2 targets in Europe for 2021 without open passenger car pooling arrangements with other manufacturers," and that kind of independence will show that Stellantis is serious about reducing emissions. The Dodge Challenger SRT Hellcat is certainly in its twilight years.