Tesla, new thud in Europe: -40% in February: now the sale of emission credits is at risk

Tesla brakes still in Europe. After -45% of January, in February the sales of the Texan manufacturer collapsed by 40% in European countries, despite The generalized increase in electric car registrations (+26.1%). In the month Tesla delivered less than 17 thousand vehicles, a quantity that brings the total since the beginning of the year just above 28 thousand units, with a drop of 42.6% compared to the first two months of 2024.

The controversies on Musk

Tesla’s thud in Europe comes downstream of the interference of Elon Musk in EU policy and its support for several far -right parties. The entrepreneur’s activism has aroused controversy and invitations to the boycott of Tesla. However, the company also suffers from the lack of new models and, above all, the restyling of its flagship car, the Model Y, crucial in the European market where SUVs represent about half of the registrations.

The arreamant competition

To these difficulties, so to speak, internal of Tesla is added the growing penetration into the electric of old and new competitors. Volkswagen And Renault they are acquiring market shares and recovering ground, while the Chinese Byd – fresh overtaking in Tesla in turnover – is implementing an aggressive expansion campaign in Europe which, according to S&P estimates, should lead to doubled sales in Europe in 2025, going from 83 to 186 thousand enrollments.

The risk for green credits

If it should continue at this rhythm, The descent of Tesla’s registration could put one of its most profitable activities at risk: the sale of green credits to other manufacturers. For years, European groups have been forming with Tesla « mutual funds » in order to compensate for their excess emissions compared to EU regulations with the zero emissions of the Musk company. From 2009 to 2024 this cleaning role has yielded 11 billion of additional revenues to Tesla Which, among other things, are at zero cost and therefore pour entirely into profits.

The thud on the stock exchange

In January Stellantis and other manufacturers such as Toyota, Mazda and Ford have communicated to the EU Commission the desire to renew the pact with Tesla also for 2025. With the steep drop in its sales in Europe, however, it is not said that the American house will be able to respect its part of the agreement at the end of the year and, therefore, to ensure the income from the sale of emission certificates. Another shadow on Tesla’s prospects who since the beginning of the year has lost 31% on the stock exchange.