Published on the day April 7, 2019 |
author Zachary Shahan
April 7, 2019 per Zachary Shahan
We have been tempted about the people who have been claiming that Tesla will die every day for 11 years. It is true, however, that it is almost unbelievable that Tesla truly survived and how quickly became so powerful and influential.
Fiat was on the other side of the electrification story, generally eager to avoid, deny, postpone, and complain about it.
One of the things that Tesla over the years has been somehow helped was the cleanliness of traffic in California, policies that required the car makers to go to an electric drive … or buy credits from a car manufacturer who sold more electric vehicles than needed. The car that sells them? Tesla, of course. The sale of these loans provided a decent low income for Tesla over the years.
– There's a new game in town. Europe has increased demand for clean vehicles. However, some large car manufacturers are not ready for them. Today, the news is that Fiat has basically kicked off the white flag and made a partnership with Tesla to reduce its costs. Financial Times reports (h / t Alter Viggo).
"Fiat Chrysler Automobiles has agreed to pay Tesla hundreds of millions of euros to drive fleet electric car makers in order to avoid large fines for breaching strict EU emission rules, which will enable FCA to neutralize CO2 emissions from of its cars compared to Tesla, lowering its average number to a permissible level.On the following year, the EU target for average CO2 emissions from the car is 95 g per kilometer.In 2018, average emissions were 120.5g per kilometer, according to data suppliers Jata Dynamics. Last year, FCA had an average of 123g, according to UBS data, saying the car manufacturer had "the highest risk of failure to meet the goal."
It seems that Fiat, instead of being punished for billions (potentially), will pay Tesla hundreds of millions.
Some see this as a bad move – allowing Fiat's foot fetching is considered a damaging move. Fiat should be forced to pay fines or get its electric act together, say critics.
The other side of the argument might be that stimulating Tesla is financially viable at this time. Tesla, no doubt, pushed the automotive industry into electrification much faster than it would achieve. In fact, it is possible that European regulations that force Fiat to pay fines or buy Tesla loans would not be nearly as strong as they would if Tesla did not prove that consumers really wanted competitive electric cars and could be manufactured.
Giving Tesla hundreds of millions of euros could help a young company in financially secure form, accelerate its development, and even speed up the construction of Tesla Gigafactory in Europe. In the end, is the financial incentive for Tesla worth more than Fiat's compliance with the minimum emission requirements? Or is Tesla fine and dandy and would it be better to force Fiata to electrify, close the shop or go to the market faster? This is a complicated computation.
It seems clear, however, that Europe is becoming more serious in relation to electric transport, and Tesla is ready to use it again, while continuing to encourage cleaner air and a stable climate as much as possible.
Still some thoughts about that tang between Tesla and Fiat? Is there any speculation about other car makers whom Tesla can save (and get) in a new European new world?
Pictures of Tesla and Tesla Shuttle