Electric cars?

[sptrawler]

The rationalisation of EV manufacturers continues.

MSN

The American electric car brand Canoo has filed for Chapter 7 bankruptcy, leaving the company unable to meet its financial obligations.

Management owes several creditors amounts ranging between $10 million and $50 million each, while the company itself is left with just $50,000 in cash.


Despite its financial struggles, CEO Tony Aquila has faced criticism for receiving an exceptionally high salary and benefiting from private jets.

The company developed a versatile "lifestyle car" capable of functioning as a minibus, pickup truck, and transporter.

But the ambitious plans never materialized into commercial success. Canoo managed to produce only a small number of vehicles.

By 2023, the company generated just $6.5 million in revenue — one-third of which came from the sale of three vehicles to the state of Oklahoma. Hopes for financial backing from the U.S. Department of Energy’s loan program were dashed when the application was denied, leaving the company unable to secure additional funding.

 

[sptrawler]

It was more about Tesla making most of its profits from selling credits.

I read up a bit on this and apparently you are spot on the E.U rule changes due in 2025, may end up being a big money spinner for Tesla.

Tesla Set to Make Billions Selling Emission Credits in Europe

Carmakers are turning to Tesla for help.

www.dagens.com

Selling Excess Emission Credits​

The European Union has introduced stricter emission limits for automakers, requiring them to lower average CO₂ emissions to 93.6 grams per kilometer in 2025.

This is a significant reduction from previous limits, forcing many manufacturers to find ways to comply, according to Moto.

Some companies have focused on improving combustion engine efficiency or increasing the share of hybrid and electric vehicles in their fleets.

Others, unable to meet the new standards quickly enough, are turning to Tesla for help.

Tesla, which exclusively produces electric vehicles, does not have to worry about emissions penalties. Instead, it has the ability to sell its excess emission credits to other automakers.

This arrangement is expected to generate significant revenue for Tesla. Industry analysts estimate that selling emission credits could bring Tesla up to $1.1 billion in revenue.

Several major automakers, including Toyota, Ford, and Stellantis, are reportedly in talks with Tesla to secure these credits.

Tesla has opened applications for companies interested in purchasing credits, with a deadline of February 5.

Other automakers are also exploring this opportunity. Volvo and Mercedes-Benz are expected to generate around $330 million each through similar credit sales.

While their earnings are substantial, Tesla’s dominant position in the electric vehicle market gives it a much greater advantage.