Tesla is facing a major problem that could cost it billions of euros

Tesla's sales in Europe have taken a serious hit.

In Germany, sales fell 76% in February compared to last year, according to Reuters.

In France, they fell by 26%.

According to Politico and Carbon Credits, the decline could also disrupt a deal it made with carmakers like Toyota and Stellantis.

Tesla sells carbon credits to these companies, helping them meet strict pollution rules in Europe.

Carbon credits are permits that allow the owner to emit a certain amount of carbon dioxide or other greenhouse gases (GHG).

It is known that last year, Tesla earned $2.76 billion from these deals, a 54% increase from the previous year, reports Telegraph.

But if Tesla isn't selling enough cars, it won't have enough credit to sell either.

Why does this matter to EV buyers?

If the company loses billions in revenue from carbon credits, it may try to make up for it by raising prices or cutting costs in ways that hurt customers.

At the same time, some Tesla customers are leaving the brand due to Elon Musk's behavior and politics.

Recently, Tesla has faced protests, with many canceled orders and a wave of reactions on social media.

Some have stated that they have stopped supporting the company because of Musk.

Furthermore, a sales slowdown could hurt the broader shift toward EVs.

Fewer people may switch from gas-powered cars to electric ones, which is not good for efforts to reduce pollution and address rising global temperatures. /Telegraph/