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Tesla doesn’t need to worry about losing EV credits from Fiat-Chrysler: report

Credit: u/Mr_Tank on Reddit

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The end of Tesla’s EV credits agreement with Fiat-Chrysler doesn’t seem to bother TSLA bulls much, and for good reason, according to Barron’s

Tesla’s EV credits agreement with Fiat-Chrysler came to an end after Stellantis CEO Carlos Tavares stated that it would not need the EV maker to meet carbon dioxide emission regulations this year. A merger between Peugeot S.A. (Groupe PSA) and Fiat Chrysler Automobiles (FCA) N.V. in January 2021 birthed Stellantis. The newly formed automaker put 14 traditional car brands under one umbrella, including Fiat, Chrysler, Jeep, Maserati, and Peugeot. 

Earlier this month, Reuters reported that Stellantis aims to meet CO2 emission regulations without Tesla’s EV credits by the end of this year. 

“With the electrical technology that PSA brought to Stellantis, we will autonomously meet carbon dioxide emission regulations as early as this year. Thus, we will not need to call on European CO2 credits, and FCA will no longer have to pool with Tesla or anyone,” Stellantis CEO Carlos Tavares.

https://twitter.com/Stellantis/status/1379728897961570308?s=20

Tesla generated a little more than $1.5 billion from EV credit sales in 2020 and reported $518 million in credit revenue in its Q1 2021 Update Letter. Over the last four quarters, Tesla reported $2.3 billion in operating income, dwarfing its EV credits revenue. 

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“The Stellantis decision isn’t going to break Tesla,” noted Barron’s. The publication stated that Stellantis’ decision only affects Tesla’s EV credit revenue in Europe. Also, Stellantis CFO Richard Palmer reported the company paid Tesla only $350 million for EV credits in 2020. 

Tesla still has EV credit deals with other legacy automakers like Honda, and in different continents. However, Tesla has always known that its credit revenue would diminish over time. The EV maker does not rely on credits for profitability, as shown by its continued efforts to grow revenue from automobile sales and car leases, among other ventures. 

https://www.teslarati.com/tesla-tsla-bitcoin-investment-2-48-billion/

Tesla has also started exploring other ways to supplement income generation. For instance, Tesla invested 1.5 billion in Bitcoin in the first quarter this year. CFO Zachary Kirkhorn explained this strategy in the recent earnings call.

“Elon and I were looking for a place to store cash that wasn’t being immediately used, trying to get some level of return on this, but also preserve liquidity,” explained Tesla’s CFO Zachary Kirkhorn at the last earnings call. 

“And bitcoin seemed at the time and so far has proven to be a good decision. A good place to place some of our cash that’s not immediately being used for daily operations or maybe not needed till the end of the year and be able to get some return on that,” Kirkhorn added.

Tesla trimmed down its Bitcoin position by 10% later and reported a profit of $272 million from the sale by the Q1 2021 earnings call. 

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Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

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Tesla rolls out minor but significant improvement to Robotaxi service

As per Tesla, Robotaxis will now arrive at their pickup locations with their doors locked.

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Credit: @AdanGuajardo/X

Tesla has rolled out a minor but significant improvement to its Robotaxi service. The update was shared by the Tesla community on social media platforms such as X. 

New Robotaxi App update

As observed by the electric vehicle community on social media, Tesla has started rolling out the Robotaxi App’s Version 25.8.5 (6074) to users. The update seems to be quite minor, though Tesla mentioned something quite notable the update’s “What to Test” section.

As per Tesla, Robotaxis will now arrive at their pickup locations with their doors locked. Customers would not need to unlock the Robotaxis manually, however, as the vehicles would automatically unlock as they approach the car. “You ride now arrives locked and will automatically unlock as you walk up. Just ensure your app has Bluetooth access enabled,” Tesla wrote.

While this update is minor, it does improve the safety of the vehicles themselves. It also provides another layer of convenience for users of the driverless ride-hailing service. The fact that Tesla is already refining the Robotaxi App’s features this early bodes well for the program. It suggests, if any, that the service will already be fairly refined when it starts being opened to more users.

Robotaxi praised for its safety

Tesla is following a deliberate and cautious rollout strategy for its Robotaxi rollout, though early reviews of the system have been quite positive. Some reviewers have also dubbed Tesla’s Robotaxi service as a safer alternative to more conventional ride-hailing services such as Uber.

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This was highlighted by auto reviewer Scotty Reiss in a post on A Girl’s Guide to Cars.

“I like the personal safety factor. No driver to threaten or harass you. You control the locking and unlocking of the car. You can change the pickup location at any time. The car will wait for you. You can call the support desk if you need help. You can change your destination if the drop-off area seems sketchy. All of it together makes me feel safer getting a car home from the airport at midnight or into the city after dark, and I definitely feel safer having my daughters take a self-driving rideshare when they go out to meet friends for dinner,” Reiss wrote in her post.

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Tesla China VP confirms Model Y L first deliveries in September

The first deliveries of the extended wheelbase all-electric family car are expected to start in just a few weeks.

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Credit: Tesla China

Tesla China Vice President Grace Tao has subtly confirmed the recently released Model Y L’s first deliveries. As per the executive, the first deliveries of the extended wheelbase all-electric family car are expected to start in just a few weeks.

Model Y L estimated delivery date

While the standard Tesla Model Y Rear Wheel Drive (RWD) and All Wheel Drive (AWD) are listed with an estimated delivery date of 1-3 weeks, the electric vehicle maker simply listed the Model Y L with an estimated delivery date of “September 2025.” This date was reiterated by VP Grace Tao in a post on Weibo. 

“Prospective Model Y L owners are welcome to post their orders in the comment section. This Sunday, August 24th, at midnight, 10 friends will be drawn to receive Tesla peripherals… Tesla cars are fun to drive alone, whether you have children or how many children, this car can meet all your needs. We will deliver in September and wait for you to get in the car,” Tao wrote.

Model Y delivery speculations

While Grace Tao’s Weibo post confirmed that the Model Y L’s first customer deliveries will indeed be held within September, some industry watchers have estimated that the extended wheelbase vehicle will start deliveries in about three weeks. This suggests that the first Model Y L customer deliveries could start around September 11 in China. This date would be quite impressive considering that the vehicle was released just a few days ago.

The Tesla Model Y has so far been a hit among followers of the company, so much so that fans in countries like the United States have expressed their intention to purchase the vehicle, which starts at just RMB 339,000 ($47,180). Unfortunately, Tesla CEO Elon Musk has stated that the Model Y L will not start production in the United States until the end of 2026. He also noted that the vehicle might not ever make it to the U.S., due to the advent of self-driving cars in the country.

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Tesla Giga Berlin fire results in zero injuries and no environmental damage

The incident occurred on Monday afternoon in the factory’s battery production area.

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(Credit: Tesla)

A small fire in Tesla’s battery assembly facility at Giga Berlin earlier this week prompted an evacuation and a temporary halt to Model Y production, though no injuries or environmental damage were reported. 

The incident occurred on Monday afternoon in the factory’s battery production area, and local authorities confirmed that Tesla immediately reported the fire. Fire crews spent several hours extinguishing the blaze before operations gradually resumed the following day.

Incident details and safety response

As noted in a report from Handelsblatt, the fire began when several stacks of battery cells fell from a conveyor belt on the first floor into a ground-level shaft. The cells ignited, with flames spreading only to the transport system on the ground floor. The Brandenburg State Office for the Environment (LfU) reported that 512 cells were affected in the incident, which is equivalent to about two-thirds of a passenger car’s battery pack.

Tesla did not respond to media inquiries, though the company did state that there was a “small fire in battery pack production.” The Oder-Spree district itself also confirmed the incident. Authorities stated that all safety procedures were followed, with Giga Berlin employees being immediately evacuated and firefighting water being fully contained within the building. A specialist cleaning firm has been tasked with handling the firefighting residue, ensuring no risk to groundwater or surrounding areas.

Impact on production and investigation

Production was immediately halted after the fire, as per a report from electrive. Drive unit assembly resumed on Tuesday afternoon, though battery pack assembly remained offline. Employees who were unable to continue their usual work participated in training programs and first-aid courses while operations were paused.

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The affected cells that were involved in the fire have not been disclosed, though Giga Berlin currently uses CATL LFP cells for Model Y base variants and LG Energy Solution NCM cells for Long Range versions. Tesla is continuing its internal investigation into the cause of the incident while cooperating with regional authorities. That being said, the district has emphasized that Tesla “took all necessary measures in line with the emergency plan agreed with the local water authority and WSE.”

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