Stellantis stock price will be in the spotlight this week as the highly embattled automaker publishes its financial results on Wednesday. STLA stock will also react to the upcoming tariff news from the Trump administration that will affect its business. It was trading at $14 in New York, where it has consolidated at in the past few weeks.
Stellantis is facing major challenges
Stellantis is one of the biggest automakers globally. It owns some well-known brands in Europe and in the United States, including Jeep, Fiat, Chrysler, and Maserati.
Stellantis, like other traditional automakers, is facing major headwinds, that pushed it to fire Carlos Tavares as the CEO in 2024. It is now being overseen by a management committee as it finds a permanent replacement.
The company is facing major problems. Donald Trump has threatened a 25% tariff on steel and aluminum as soon as in March. He has also signaled that he will add a 25% tariff on Canadian and Mexican imports.
All these tariffs will impact Stellantis, a company that has a large manufacturing plant in Mexico that makes vehicles for the US market.
It is now contending with fresh competition from Chinese companies like Nio, BYD, Li Auto, and Xpeng. While these companies have a minimal market share in Europe, there is a high likelihood that they will give it more competition in the coming years.
Further, Stellantis is now suffering from years of underinvestment for some of its brands, a move that has seen them lose market share. For example, the Chrysler brand is almost dead, with its 2024 sales totaling about 124,683 vehicles.
Maserati and Alfa Romeo, its alternatives to Audi and Porsche are still seeing weak sales in the US. The same is happening with its other brands like Jeep, Dodge, and RAM.
These actions have pushed some American lawmakers to recommend separating the American and European brands.
Stellantis has embarked on a cost cutting strategy as it seeks to boost efficiency. Just last week, the firm said that it was pausing work on the Jeep Compass vehicle and all activities in its Brampton plant in Ontario.
STLA earnings ahead
The next key catalyst for the Stellantis stock price is its upcoming earnings that will shed more light on its business. The most recent results revealed that its revenue crashed by 27% in the third quarter to €33 billion, which the management blamed on temporary challenges, including lower volumes and pricing. Its shipments tumbled by 20% to 1.15 million vehicles.
All locations are seeing major challenges for Stellantis. Its North America shipments dropped to 299k vehicles from 470k a year earlier. The enlarged Europe sales fell by 17% to 496k, while its Middle East and Africa sales fell by 26%.
These numbers mean that the company needs to do a lot of work to boost its sales in the coming months.
Analysts anticipate that Stellantis sales crashed by 26% to €33.2 billion euros, bringing the annual figure to €155 billion. On the positive side, they expect that its 2025 revenues will bounce back to €162.5 billion. There are odds that Stellantis will miss its earnings this week as its challenges remain.
The company is also contending with the general weaker consumer spending in Europe and in the United States.
Stellantis stock price forecast
STLA chart by TradingView
The daily chart shows that the STLA stock price has remained in a tight range in the past few months. It has formed a rectangle chart pattern whose support and resistance levels are at $12.3 and $14 levels.
Stellants stock has moved slightly above the 50-day moving average. Further, the MACD and the Relative Strength Index (RSI) have pointed upwards. Therefore, the outlook for the stock is neutral, with the key point to watch being at $12.3 and the 23.6% Fibonacci Retracement point at $15.75.
The post Stellantis stock price analysis: will it rise or fall after earnings? appeared first on Invezz