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Tesla could land $500 million dollar payday, courtesy of Fiat Chrysler in emissions tradeoff
Tesla and Fiat Chrysler have entered into a deal to help the legacy automaker weather strict European Union emissions regulations that are set to take effect next year, according to a report published by Financial Times. This arrangement is the first of its kind and is estimated by one Wall Street firm to equate to $500+ million dollars worth of credits to Tesla from Fiat Chrysler over the next 2-3 years.
Jefferies on the @Tesla @fiat open pooling arrangement:
"We assume that compensation to Tesla could be in excess of $500m relating to 2020 and 2021 each with payments possibly starting earlier (2019) to spread costs".
— Patrick McGee (@PatrickMcGee_) April 8, 2019
Beginning in 2020, 95% of automotive fleet-wide emissions in the EU must average under 95g of CO2 per kilometer, i.e., have a fuel efficiency of about 57 mpg for internal combustion vehicles. In 2021, full fleets must be compliant, and the penalties could add up to financial ruin for companies unable to meet the strict standards.
The EU rules further allow different auto companies and divisions to pool together to form an expanded fleet, thus averaging out emissions across larger numbers of vehicles. Companies with existing low or zero emissions divisions can combine with their higher emissions divisions to meet the standards, or if the benefit outweighs the awkward arrangement, they can combine with companies like Tesla whose all-electric, zero emissions fleets would provide significant average emissions reductions.
Tesla offered its “open pool” deal to other auto manufacturers, but the Italian-American car maker was the only one with an arrangement by Tesla’s March 25th deadline. Fiat Chrysler has been slower than its industry peers to adopt an electrification plan for its vehicles sold in the region and needed to buy more time until a strategy could be worked out. The company has announced a $10.5 billion dollar plan to bring alternative power to its vehicle lineup, but any efforts in that direction will not manifest into enough production vehicles to avoid the EU fines by the impending deadline.
Under EU rules, Tesla qualifies for “super-credits” which allow a trade-off of electric car sales against ICE vehicles; the company has already managed similar profitable credit trades in California that brought in $280 million dollars in 2017. This number may be where the estimated $500+ million payout figure from Jeffries Financial Group is stemming from. Altogether, the pooling arrangement looks to be a temporary win-win for the two companies, and the deal was reportedly agreed to on February 25th.
Tesla has become a proven leader in developing emissions-free transportation. Since the release of its flagship Model S luxury sedan, the car’s appeal has fueled both the growth of the company – now on its fourth mass-produced electric vehicle with a fifth on the way – and new market demand for electric cars. Tesla’s competitors have taken note and many have committed billions to electrification of their fleets, even without looming EU regulations. US auto industry giant Ford Motor Company, for example, is planning an $11 billion investment into 40 electrified vehicles by 2022, as announced at last year’s Detroit Auto show.
Overall, the “Tesla Effect” on the global market has only begun, and the beginning of the EU’s strict emissions regulations may be the tip of the iceberg of changes coming to the numerous industries impacted by the coming shifts in the automotive arena.
Tesla CEO Elon Musk revealed today on the social media platform X that legacy automakers, such as Ford, General Motors, and Stellantis, do not want to license the company’s Full Self-Driving suite, at least not without a long list of their own terms.
“I’ve tried to warn them and even offered to license Tesla FSD, but they don’t want it! Crazy,” Musk said on X. “When legacy auto does occasionally reach out, they tepidly discuss implementing FSD for a tiny program in 5 years with unworkable requirements for Tesla, so pointless.”
I’ve tried to warn them and even offered to license Tesla FSD, but they don’t want it! Crazy …
When legacy auto does occasionally reach out, they tepidly discuss implementing FSD for a tiny program in 5 years with unworkable requirements for Tesla, so pointless. 🤷♂️
🦕 🦕
— Elon Musk (@elonmusk) November 24, 2025
Musk made the remark in response to a note we wrote about earlier today from Melius Research, in which analyst Rob Wertheimer said, “Our point is not that Tesla is at risk, it’s that everybody else is,” in terms of autonomy and self-driving development.
Wertheimer believes there are hundreds of billions of dollars in value headed toward Tesla’s way because of its prowess with FSD.
A few years ago, Musk first remarked that Tesla was in early talks with one legacy automaker regarding licensing Full Self-Driving for its vehicles. Tesla never confirmed which company it was, but given Musk’s ongoing talks with Ford CEO Jim Farley at the time, it seemed the Detroit-based automaker was the likely suspect.
Tesla’s Elon Musk reiterates FSD licensing offer for other automakers
Ford has been perhaps the most aggressive legacy automaker in terms of its EV efforts, but it recently scaled back its electric offensive due to profitability issues and weak demand. It simply was not making enough vehicles, nor selling the volume needed to turn a profit.
Musk truly believes that many of the companies that turn their backs on FSD now will suffer in the future, especially considering the increased chance it could be a parallel to what has happened with EV efforts for many of these companies.
Unfortunately, they got started too late and are now playing catch-up with Tesla, XPeng, BYD, and the other dominating forces in EVs across the globe.
Tesla is backtracking on a strange adjustment it made to its in-car Navigation feature after numerous complaints from owners convinced the company to make a change.
Tesla’s in-car Navigation is catered to its vehicles, as it routes Supercharging stops and preps your vehicle for charging with preconditioning. It is also very intuitive, and features other things like weather radar and a detailed map outlining points of interest.
However, a recent change to the Navigation by Tesla did not go unnoticed, and owners were really upset about it.
For trips that required multiple Supercharger stops, Tesla decided to implement a naming change, which did not show the city or state of each charging stop. Instead, it just showed the business where the Supercharger was located, giving many owners an unwelcome surprise.
However, Tesla’s Director of Supercharging, Max de Zegher, admitted the update was a “big mistake on our end,” and made a change that rolled out within 24 hours:
The naming change should have happened at once, instead of in 2 sequential steps. That was a big miss on our end. We do listen to the community and we do course-correct fast. The accelerated fix rolled out last night. The Tesla App is updated and most in-car touchscreens should…
— Max (@MdeZegher) November 20, 2025
The lack of a name for the city where a Supercharging stop would be made caused some confusion for owners in the short term. Some drivers argued that it was more difficult to make stops at some familiar locations that were special to them. Others were not too keen on not knowing where they were going to be along their trip.
Tesla was quick to scramble to resolve this issue, and it did a great job of rolling it out in an expedited manner, as de Zegher said that most in-car touch screens would notice the fix within one day of the change being rolled out.
Additionally, there will be even more improvements in December, as Tesla plans to show the common name/amenity below the site name as well, which will give people a better idea of what to expect when they arrive at a Supercharger.
News
Dutch regulator RDW confirms Tesla FSD February 2026 target
The regulator emphasized that safety, not public pressure, will decide whether FSD receives authorization for use in Europe.
The Dutch vehicle authority RDW responded to Tesla’s recent updates about its efforts to bring Full Self-Driving (Supervised) in Europe, confirming that February 2026 remains the target month for Tesla to demonstrate regulatory compliance.
While acknowledging the tentative schedule with Tesla, the regulator emphasized that safety, not public pressure, will decide whether FSD receives authorization for use in Europe.
RDW confirms 2026 target, warns Feb 2026 timeline is not guaranteed
In its response, which was posted on its official website, the RDW clarified that it does not disclose details about ongoing manufacturer applications due to competitive sensitivity. However, the agency confirmed that both parties have agreed on a February 2026 window during which Tesla is expected to show that FSD (Supervised) can meet required safety and compliance standards. Whether Tesla can satisfy those conditions within the timeline “remains to be seen,” RDW added.
RDW also directly addressed Tesla’s social media request encouraging drivers to contact the regulator to express support. While thanking those who already reached out, RDW asked the public to stop contacting them, noting these messages burden customer-service resources and have no influence on the approval process.
“In the message on X, Tesla calls on Tesla drivers to thank the RDW and to express their enthusiasm about this planning to us by contacting us. We thank everyone who has already done so, and would like to ask everyone not to contact us about this. It takes up unnecessary time for our customer service. Moreover, this will have no influence on whether or not the planning is met,” the RDW wrote.
The RDW shares insights on EU approval requirements
The RDW further outlined how new technology enters the European market when no existing legislation directly covers it. Under EU Regulation 2018/858, a manufacturer may seek an exemption for unregulated features such as advanced driver assistance systems. The process requires a Member State, in this case the Netherlands, to submit a formal request to the European Commission on the manufacturer’s behalf.
Approval then moves to a committee vote. A majority in favor would grant EU-wide authorization, allowing the technology across all Member States. If the vote fails, the exemption is valid only within the Netherlands, and individual countries must decide whether to accept it independently.
Before any exemption request can be filed, Tesla must complete a comprehensive type-approval process with the RDW, including controlled on-road testing. Provided that FSD Supervised passes these regulatory evaluations, the exemption could be submitted for broader EU consideration.
Tesla CEO Elon Musk sends rivals dire warning about Full Self-Driving
Tesla backtracks on strange Nav feature after numerous complaints
