Are Tesla and Fiat Chrysler getting together?
The two automakers reportedly have reached a deal that will let Fiat Chrysler count Tesla’s cars as part of its fleet of vehicles, helping Fiat Chrysler avoid potentially hefty European Union penalties on automobile emissions.
Under terms of the deal, Fiat Chrysler will pay Tesla to create what is described as an “open pool” of cars that will allow Fiat Chrysler to report lower overall emissions outputs of its vehicles.
Fiat Chrysler must have anticipated some heavy fines from the EU over emissions. According to Macquarie Research analyst Maynard Um, the automaker is believed to be paying Tesla as much as $750 million in order to, in effect, purchase emissions credits from the electric carmaker.
Um said that Tesla is likely to begin seeing revenue from the arrangement starting in 2020. A Tesla spokesperson didn’t immediately return a request for comment about the arrangement.
