Tesla has an additional income earning system to everyone you know. In addition, it serves to weaken the competition, that’s right.
Tesla is one of those companies that is born every several decades. Over the years, it has managed to gain a foothold in an industry in which supply was unable to detect the desire of demand for quality electric cars. In just a few years, the Palo Alto-based firm has managed to overtake historical manufacturers on the right of any size. So much so, that many brands are doing the impossible to achieve it.
Just a few days ago, Volkswagen acknowledged that Tesla has caused the company to accelerate its plans for the electrical division. The German business holding is by no means the only one that wanted to show its electrification plans after contemplate the success of the company whose maximum exponent it’s Elon Musk. Of course, Tesla is aware of this competitive advantage and, therefore, tries to make the most of it.
We all know what the company’s main lines of business are, right? The vehicle itself, the subscription programs or the energy assortment in its so-called Superchargers are some of its main sources of income. Nevertheless, there is an additional one that not everyone knows. In fact, the entities that resort to this practice also do not get a great reputation for it. Yes, there are manufacturers that pay huge sums of money to Tesla.
In what other industry would it be well considered for a company to pay its own competition? It is nonsense that, however, current laws in Europe do this may be So. The latest movement in this regard features Land Rover, a historic company in the automotive sector. Even more so in Europe. Well, why should the British manufacturer pay Tesla?
Let’s see how the exclusive production of electric vehicles can be a benchmark in the coming years for Tesla. At the end of the day, it is what competing in a market has not been able to adapt to new technologies in time. Bad investments and of course delaying electrification plans as much as possible has caused a truly difficult situation for some traditional firms.
Yes, Land Rover will also join the club of manufacturers that pay Tesla
It is important to bear in mind that it is not a non-aggression pact between brands or, simply, the sale of information regarding the production of electric cars. The matter is directly related to the presence of a certain regulation in Europe. As can be read in the specialized portal Electrek, Land Rover will go to Tesla to continue marketing automobiles. This is mainly due to a regulation in Europe.
The operation of this directive lies in the ecological transition that all manufacturers must carry out. It would be dealt with, in a colloquial way, in the provision of certain pollution rights. Each player in the market has X units, which depend on the volume of production. If the limit is exceeded, millionaire fines come into play. And you ask yourself, what does Tesla have to do with this story?
The firm led by Elon Musk does not produce combustion vehicles, so all those ‘rights’ you have can be assigned to third parties. Taking into account that Tesla will never use this permit offer, it markets them to third-party firms, which have not gotten the hang of it when it comes to ecological transition. It is a fundamental policy with which both parties benefit. Now, why is Land Rover interested in this option?
As can be read in the aforementioned portal, the British company, owned by the TATA Motors group, paid around $ 50 million in penalties for having exceeded the production volume. It is therefore expected that the amount to be transferred to Tesla will not reach this level. Still, what other examples have taken place in recent years? Without a doubt, the clearest example is shown by Honda and FCA.
Honda and FCA as benchmarks in payments to Tesla for this type of rights
What happens when a manufacturer produces general-purpose automobiles? It will require a greater number of pollution permits. Apparently, this type of practice has been going on since 2019. In that year, FIAT Chrysler Automobiles, part of what is currently Stellantis, came to pay up to 2 billion dollars to Tesla in order to increase the volume of production of internal combustion cars.
Last year, in addition to this conglomerate, it was Honda the company that used this practice. Today, Honda continues to capitalize on the agreement, demonstrating the great work that remains to be done when it comes to transforming the fleet.
We will have to wait a while to know if political measures are intensified to favor, even more, the electric car or if, on the contrary, additional incentives are not required because this technology is much more competitive in the market.
Related topics: Motor
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