Politico reports:

Elon Musk’s political meddling in Europe is cratering Tesla’s sales — and that’s putting at risk its revenue from selling credits to other automakers looking to avoid paying penalties for not meeting European Union emissions targets.

European automakers face fines should they fail to meet this year’s carbon dioxide reduction goals, but those selling too many CO2-emitting cars can dodge the fee by pooling with a company doing better than the EU demands. That’s been a lucrative earner for all-electric Tesla.

Since its founding, the electric vehicle company has brought in billions from such schemes. In 2024, it made $2.76 billion on emissions deals, a 54 percent year-over-year increase, its annual financial earnings report shows.

That revenue stream is now in jeopardy as consumers across Europe shun the brand after Musk, a key adviser to United States President Donald Trump, threw his support behind far-right parties and made incendiary remarks about Germany letting go of its Nazi past.

Stellantis, Toyota and Ford joined a pool with Tesla this year, opting to pay the American carmaker for its credits.

“If things go bad for Tesla and they don’t sell enough cars this year, they might not have enough credits for what they promised Stellantis and the others,” said Peter Mock, managing director of the International Council on Clean Transportation. “Tesla is under pressure.” [Continue reading…]