Investors fear a second Trump administration could end Tesla's ability to generate hundreds of millions of dollars by selling regulatory credits.

That just isn't the case so far.

Over the weekend, Reuters reported that Stellantis was planning to buy regulatory emission credits from Tesla in 2025, citing Stellantis' European operations chief, Jean-Philippe Imparato, speaking at an event in Italy.

Stellantis and Tesla didn't immediately respond to a request for comment.

In Europe and some other regions, auto makers have to meet emissions requirements on vehicle sales or face fines.

To meet the guidelines, European auto makers must have, roughly, 25% of 2025 sales come from zero-emission vehicles. Battery electric vehicles, or BEVs, are zero emission cars, but BEV penetration of new car sales in Europe ended 2024 at about 15%.

There is a per-car fine that adjusts based on how much emissions targets were missed. The European Passenger Car Association estimates fines could total $18 billion in 2025.

Tesla sells only BEVs, more than its fair share, so it can sell regulatory credits to others to avoid fines.

The same happens in the U.S., but most of Tesla's regulatory credit income comes from California state policy. The state has a waiver to regulate its carbon emissions from the EPA, but President Donald Trump could attempt to revoke the waiver. That action would be challenged by California in court, according to state officials.

The challenge hasn't happened yet, so Tesla's credit income will keep rolling in. The amount is significant. Since 2019, Tesla's credit sales have amounted to about $10 billion, or more than 25% of the total operating income reported over that span.

U.S. credit sales remain a watch item for Tesla investors. European credits don't seem to be a risk, but European car makers, struggling to meet standards, have asked for relief, t00. They have received some. EU compliance is now based on average emissions from 2025 to 2027.

That didn't stop Stellantis from compiling credits in 2025, though.

Coming into Monday trading, Tesla stock was down about 46% from all-time highs reached in mid-December, but up about 50% over the past 12 months, about 44 percentage points better than the S&P 500.