Tesla strikes a deal with Fiat to avoid EU fines
Tesla agreed a deal with Fiat Chrysler that would count its clean-energy cars among the U.S.-Italian automaker's fleet in order to reduce its overall emissions output. Tesla shares were higher in pre-market trading Monday following the news.
Tesla agreed a deal with Fiat Chrysler to reduce its overall emissions output, shares rise.
Stocks impacted: Tesla (TSLA), Fiat (FCA)
The agreement would allow Fiat to avoid punitive European Union fines as Fiat will be paying "hundreds of millions" in fees to Tesla in order to create a so-called open pool of cars. By pooling their vehicles, the Italian carmaker will be able to report a lower average emission figure. As a reminder, new, tougher rules come into force next year in the European Union, imposing an average emissions limit of 95g per kilometer. Tesla has not confirmed the deal, and it is not clear how much it is worth but according to some reports, the deal was worth hundreds of millions of euros.
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