Toyota and Stellantis walk out of Tesla’s EU CO2 credit pool

Toyota and Stellantis have both withdrawn from Tesla’s EU CO2 emissions pool for 2026 according to EU filings, while Ford, Honda, Mazda and Suzuki still remain as members. The two departing automakers are widely considered to have been Tesla’s largest financial contributors to the pool.

Under EU rules, manufacturers unable to meet fleet CO2 targets independently can pool with lower-emission manufacturers, generally paying a hefty sum for the privilege of doing so. Tesla, which exclusively sells battery-electric vehicles, has thus far been the dominant pool anchor in Europe. UBS analysts estimated that the arrangement generated over €1bn for Tesla in Europe alone during 2025, but that was during a period of time where the pool included Toyota, Stellantis, Leapmotor, Ford, Honda, Mazda, Subaru and Suzuki.

Toyota’s exit from the pool arguably reflects its trajectory toward self-sufficiency and gradual efforts to embrace electrification. For years, the automaker has maintained a large portfolio of hybrid and electric options for the European market, but has also proven more hesitant than others to concede to the prospect of zero-emissions future based solely on battery-electric vehicles (EVs). It, alongside South Korean counterpart Hyundai, has maintained investments into hydrogen mobility even as interest in the segment dries up elsewhere. 

Now, Toyota’s EV lineup is expanding fairly rapidly, with the Urban Cruiser now hitting European showrooms and the bZ4X reaching the top of Denmark’s EV sales chart in February. The automaker is currently expected to meet its 2025 target of 96.3 grams of CO2 per kilometre almost exactly. 

Stellantis has a different rationale. The group missed its 2025 CO2 target by approximately six grams per kilometre but is now at liberty to form its own pool with Leapmotor. It currently holds a 51% stake in the Chinese automaker. Leapmotor delivered over 17,000 vehicles in Europe in the fourth quarter of 2025 alone and will begin production at a Stellantis facility in Zaragoza, Spain, in the final quarter of 2026. This arrangement gives Stellantis adequate European CO2 coverage without the need to pay Tesla for pool access.

Unfortunately for Tesla, its regulatory credit revenue is facing pressure on both sides of the Atlantic. In the US, the elimination of the emission credit market cost Tesla an estimated US$1.4bn in revenue. It is also reckoning with the loss of federal EV tax credits, worth up to US$7,500, which have caused domestic demand to backslide considerably. 

Globally, credit income fell 28% in 2025 to approximately US$2bn, down from a record US$2.76bn in 2024. EU pool decisions can be revised until 1 December, leaving a theoretical window for Toyota or Stellantis to rejoin if their emissions positions deteriorate mid-year.