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Fiat agrees to pay Tesla hundreds of millions of euros

Italian carmaker Fiat Chrysler Automobiles NV has agreed to pay electric carmaker Tesla hundreds of millions of euros so that the vehicles of Tesla are counted in its fleet to avoid fines for violating new European Union emission rules, the Financial Times (FT) reported yesterday.

The step will let the Italian carmaker offset carbon dioxide emissions from its cars against Tesla's, by bringing down its average figure to a permissible level, the FT said.

The report did not mention further financial details of the specific amount that Fiat Chrysler has agreed to pay Tesla.

The Italian carmaker formed an open pool with Tesla on Feb 25, the report added, citing a declaration with the European Commission.

Tesla and Fiat Chrysler did not immediately respond to a request by Reuters for comment yesterday.

In a separate development, a federal judge in Manhattan on Friday ordered Tesla chief executive Elon Musk and the US Securities and Exchange Commission (SEC) to meet for at least an hour to try to settle the agency's concerns over the billionaire entrepreneur's use of Twitter.

The SEC had asked US District Judge Alison Nathan to hold Mr Musk in contempt over a Feb 19 tweet in which the agency said he had improperly posted material information about Tesla's vehicle production outlook without first seeking approval from its lawyers.

In an order on Friday, the judge gave both sides until April 18 to reach a resolution. If they do not, the judge said she would decide whether to hold Mr Musk in contempt.

If he is held in contempt, the judge will allow the parties to weigh in on possible sanctions. - REUTERS

BUSINESS & FINANCE