Fiat owner Stellantis announced that it will no longer be buying emission credits from Tesla, which could impact the Elon Musk led carmaker’s future earnings. Tesla earned $518mn from the sale of these credits in Q1 that translated into net profits of $438mn. Last year, the Model S maker raked in $1.6bn via the sale of credits across the world. Stellantis’ decision comes after the the company entered into a deal with Tesla in 2019 to pool credits to pass the stringent European carbon dioxide rules. The European regulators allow for companies that fail to meet emission rules to tie up with cleaner rivals, allowing them to pool credits to meet the requirements. Pooling of American and European carmakers is quite common with Ford pooling with Volvo and Volkswagen pooling with MG last year.

Tesla’s 5.3% 2025s traded slightly lower at 103.82 yielding 4.31% on the secondary markets.

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