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Unexpected Challenges: Stellantis Shares Take a Hit

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Matt Monaco Fact-checked by Bryce Tuohey
Updated 3/20/2025, 5:03 pm ET 3/20/2025, 5:03 pm ET | 6 min 6 min read
Unexpected Challenges: Stellantis Shares Take a Hit Thumbnail

Stellantis N.V. faces a potential market impact from heightened competitive challenges due to Tesla’s aggressive price cuts and expansion into European markets. On Thursday, Stellantis N.V.’s stocks have been trading down by -3.8 percent.

Brief Overview of Key Events

  • A drop in half-year earnings for Stellantis was reported, with adjusted EPS decaying from EUR 2.79 to EUR 0.08. This was accompanied by a decrease in revenue, exacerbated by economic headwinds.
  • An investigation by Italy’s antitrust body scrutinizes Stellantis’ claims regarding the performance of its electric vehicles. Misleading information about EVs has put the company under a magnifying glass.
  • Stellantis halted plans for the Jeep Compass SUV’s production to rethink its strategy, signaling possible shifts in production priorities.
  • The European Union’s new car registrations fell by 2.6%, notably affecting Stellantis along with several other carmakers, tightening the market for new car buyers.
  • The onset of a 25% tariff on goods imported from Mexico and Canada could ramp up costs for Stellantis due to substantial exports from these countries.

Candlestick Chart

Live Update At 17:03:21 EST: On Thursday, March 20, 2025 Stellantis N.V. stock [NYSE: STLA] is trending down by -3.8%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Stellantis’ Recent Financial Picture

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Stellantis is navigating a tumultuous financial landscape. The conclusion of 2024 saw a steep decrease in key financial metrics compared to the prior year. Notably, adjusted earnings per share plummeted to EUR 0.08 from a previous EUR 2.79, and net revenue diminished to EUR 71.86B from EUR 91.18B. This paints a picture of a company confronting significant headwinds. Although these results are discouraged, Stellantis managed to achieve substantial strategic objectives, like initiating electric vehicle battery production facilities and forming a partnership with Leapmotor International.

Looking through the details, Stellantis is carrying a notable long-term debt of $25.04B amidst total liabilities of $125.5B. With total assets reported at $207.6B, the stocks’ book value per share lands at $28.36, suggesting a market valuation considerably underpinned by tangible assets. The firm’s profitability ratios show a pretax profit margin of 6.1%, highlighting the challenges Stellantis faces in converting revenues into profits.

More Breaking News

Despite these hurdles, Stellantis demonstrates resilience with strategic initiatives, notably entering the EV sector by investing in battery production. However, competition is fierce, and any shortcomings in the credibility of their EV performance claims might risk market share.

News Influence on Stellantis’ Market Position

Investigating Italy’s antitrust investigation casts a shadow over Stellantis’ reputation. The agency contends that Stellantis, along with peers like Tesla and VW, misled consumers with exaggerated claims about their EV batteries. These allegations challenge consumer trust, potentially nudging buyers toward competitors.

Moreover, Stellantis faced a daunting regulatory hurdle with new tariffs. The 25% tax on imports from Mexico and Canada has left the company navigating a costly landscape for parts destined for the U.S. market. Car prices may swell if Stellantis opts to pass these expenses onto consumers.

The multinational’s decision to pause Jeep Compass production reveals an adaptive business acumen. This pivot exemplifies a growth-oriented recalibration, though the initial hesitance may disrupt investor faith in previously steady production beats.

Together, these multi-faceted challenges have set the stage for Stellantis’ fluctuating market prospects. Despite ambitions of a pivot towards electrification and flexibility in dynamic markets, facing regulatory and financial adversities may bolster or break investor confidence.

The Story Ahead: Stellantis’ Path to Resilience

Stellantis’ journey is a compelling narrative of adaptability. Amidst fiscal turbulence, the company is reassessing its operations, emphasizing strategic partnerships, and expanding into green energy. As it strives to innovate and overcome financial distress, Stellantis demonstrates grit — a trait essential for navigating a transforming automotive landscape that favors sustainable technologies and transparency with consumers.

In the wake of tariff impact, evolving product strategies signal a readiness to confront trade uncertainties. Stellantis’ actions serve as a barometer of resilience, with its strategy in tackling these challenges pointing the way to resilience, where adaptation and growth coexist. As millionaire penny stock trader and teacher Tim Sykes says, “It’s better to go home at zero than to go home in the red.” This trading mindset resonates with the company’s focus on maintaining stability rather than risking detrimental losses in its pursuit to adapt and innovate.

In summation, Stellantis finds itself at a crossroads. Heading into 2025 and beyond, it must confront the ripple effects of prior decisions, regulatory hurdles, and market dynamics while steadfastly advancing on the electrification chessboard. As it molds a path towards reinvigoration, its trajectory will likely reflect not only on its ability to withstand adversity but to transform it into opportunity.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”