Strict European emissions rules are forcing automakers to pay Tesla big bucks. Here's why the EV giant's regulatory credits business is booming.

The EV giant is banding together with major competitors including Ford, Stellantis, and Toyota to help them meet European emissions targets.

The arrangement allows carmakers to average out the emissions of their fleets, with those selling fewer EVs compensating companies like Tesla that over-comply with limits on carbon dioxide emissions.

European carbon emissions regulations are getting tighter for 2025, so to avoid fines, automakers are buying credits.

Tight emissions rules going into effect could have several automakers turning to Tesla to avoid fines. S trict new emissions regulations in Europe are now in effect, and automaker