Tesla only builds electric cars. And since they do not emit CO2, Tesla builds up emission credits, which the company can sell to other car brands. Fiat Chrysler was a major buyer of Tesla’s emissions credits. The company did not meet the emission requirements, so it bought the right to add an x number of zero-emission Teslas to its fleet for several hundred million dollars.
Ford, Toyota and Volkswagen oppose Tesla’s call
The US government decided in 2016 to fine carmakers more heavily if they do not meet the Corporate Average Fuel Economy (CAFE) requirements, but the Trump administration has postponed that measure. Tesla has now asked the court to make a quick decision on introducing higher fines. General Motors, Ford, Toyota and Volkswagen, among others, have asked the court to ignore Tesla’s request.
Tesla fears its emissions credits will fall in value
“The fact that Tesla will benefit from more certainty about the value of its CAFE credits is not a reason to suddenly disrupt the administrative process,” the manufacturers write in their defence. Because that’s exactly what Tesla bases its plea on: the value of its emissions credits. A decision must now be made on the high fines, the company says, because “this delay continues to have a negative effect on the market for emissions credits”.
High fines will cost manufacturers hundreds of millions
The higher fines will put pressure on automakers in America to develop more fuel-efficient models, just as has happened in Europe. Many corporations are not ready and must therefore set aside hundreds of millions of dollars for fines or CAFE credits (Stellantis – the parent company of Chrysler, Dodge and Ram – estimates the amount at $ 609 million). And Tesla benefits from that.
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