Yesterday, Reuters reported, citing people familiar with the matter, that FAW-Volkswagen will purchase carbon credits from Tesla China for the first time to comply with its regulatory requirements in the Chinese market.
As the world’s largest automobile market, China sold 25 million cars last year, while FAW-Volkswagen sold 2.16 million cars.
Tesla has traded carbon credits in other markets, but this is the first attempt in the Chinese market. According to sources, it is not yet clear how many carbon credits FAW-Volkswagen will purchase from Tesla, but Tesla’s price is about RMB 3,000 per credit, higher than in previous years.
FAW-Volkswagen declined to comment on the transaction, while Tesla has not responded.
In the US market, regulatory agencies have also established similar environmental compliance requirements, and Tesla has sold carbon credits to competitors such as Fiat Chrysler. According to regulatory documents, Tesla’s revenue from selling carbon credits in 2020 totaled $1.58 billion.
🔗Source: Reuters
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.