UBS: Tesla could collect over $1 billion from EU automakers due to pooling deal
01/09/2025 09:53 AM
Earlier this week, reports emerged stating that several automakers are looking to pool carbon emissions with Tesla to comply with the European Union's 2025 rules on CO2 emissions.
As per analysts from UBS Group AG, such a deal could result in Tesla collecting over $1 billion from other automakers this year.
The pooling deals:
- As per previous reports, the automakers that are looking to pool CO2 emissions with Tesla include Stellantis, Toyota, Ford, Mazda, and Subaru.
- Volvo, Polestar, and Smart are reportedly planning on pooling their carbon emissions with Mercedes-Benz.
- As per an EU document, any other automaker that wishes to join Tesla's pool would have until February 5 to submit their application.
- Automakers that wish to join Tesla's pool must sign a non-disclosure agreement and provide data to Tesla on their CO2 emissions, as noted in a Yahoo Finance report.
What UBS analysts are saying:
- In a report published on Wednesday, UBS analysts led by Patrick Hummel noted that Tesla could be sitting on a lot of compensation with regards to its pooling deal in the EU.
- "Tesla's compensation could even exceed €1 billion if it monetizes its entire long CO2 position," the UBS analyst noted.
- The analyst, however, noted that it is unclear if Tesla’s pool is already "maxed out" or if the electric car maker can accommodate more automakers.
- The UBS analysts also noted that Stellantis pooling with Tesla is quite surprising since CEO Carlos Tavares has previously suggested that the automaker will be looking to comply with EU rules organically.
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