Stellantis to Continue Buying Tesla CO₂ Credits Despite EU Compliance Extension

Stellantis has confirmed it will continue purchasing carbon dioxide credits from Tesla in 2025, underscoring its commitment to meeting European Union emissions targets despite recent regulatory leniency. The European Commission recently approved a new compliance framework allowing automakers to average their fleet emissions over a three-year period (2025–2027), which was initially seen as a relief for manufacturers struggling to meet short-term goals.

However, Stellantis—Europe’s second-largest automaker—is taking no chances. “I’ll use everything,” said Jean-Philippe Imparato, the company’s European head, when asked about relying on Tesla’s emissions pool. The move reflects a pragmatic approach as Stellantis grapples with lagging EV sales, which currently account for 14% of its European portfolio—well below the EU’s 21% target.

Imparato acknowledged the breathing room provided by the compliance extension but cautioned that it does not resolve structural challenges. “The 2027 extension gives us some breathing space, but does not provide a solution,” he said, pointing to the company’s need for accelerated electrification strategies.

To that end, Stellantis is advancing production of both hybrid and electric vehicles. A new hybrid version of the Fiat 500 will begin production in November at the Mirafiori plant in Turin, with annual output expected to reach 130,000 units across hybrid and fully electric models. The dual-track strategy aims to address evolving emissions regulations while responding to varied consumer demand.

Stellantis’ continued reliance on Tesla’s credits highlights the transitional pressures facing legacy automakers amid tightening climate regulations. While the EU’s compliance shift offers temporary relief, the broader imperative to scale electric vehicle production remains.