ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
Automobiles

In struggle to meet EU rule, automakers turn to Tesla for credits

$17bn in fines await if emissions standards are not met by 2021

A Tesla car is charged at a Tesla dealership in Salt Lake City.   © Reuters

TOKYO -- Global automakers face the risk of 14.5 billion euros ($17.2 billion) in fines from the European Union for failing to meet tougher new emissions standards, a prospect that has sent them racing to buy carbon credits from U.S. electric vehicle maker Tesla.

Tesla sold $428 million in the credits for the quarter ended in June, up fourfold on the year to produce 7% of the company's revenue. Most of the sales come from a similar system in California, but major automakers increasingly seek to buy EU credits.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more