2021 started incredibly well for Tesla, as it recorded its highest ever stock value in its history, and just after a pre-tax income of $533 million for the first quarter, the technology company has lost a major source of this revenue. $518 million of the first quarter revenue comes from the sale of green emissions credits to other manufacturers, but now it’s lost a huge client in the form of Stellantis NV, formerly FCA.
The company announced yesterday that it will no longer have its emissions-credit agreement with Tesla, saving itself $360 million in the process. $240 million of this would have gone to Tesla according to Stellantis Chief Financial Officer Richard Palmer.
“Stellantis will be in a position to achieve CO2 targets in Europe for 2021 without open passenger-car pooling arrangements with other automakers,” the company said in a statement.
This is a big issue for Tesla, as its main source of revenue does not come from its sales of the Model S, X, 3, or Y. Instead, it comes from the sale of these green credits. Unfortunately, as other manufacturers start to push forward in the EV industry, they will be pulling out of their agreements with Tesla, leaving the Californian company with little revenue unless they can find other sources of income. This is a huge turning point for Tesla, so let’s hope they can pull something out of the bag.