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Tesla enters into CO2 pooling agreement with a number of automakers, reducing Volkswagen’s strategic options
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Tesla will enter into a CO2 pooling with a number of automakers such as Toyota, Stellantis, Ford, Mazda, Subaru, Peugeot, etc, leaving little room for Volkswagen to participate in its pool.
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Similarly, Volvo will pool with Mercedes.
“In any case, we think the strategic options for VW and Renault have shrunk with yesterday’s announcements,” analyst Patrick Hummel of UBS wrote.
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Hummel said Volkswagen and Renault may be forced to sell more margin-dilutive EVs, leading to a downside risk of 10% on earnings before interest and taxes.