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Stellantis Shares Slide After BofA Downgrade Over Europe Worries

Analysts See Weak Results Ahead and Major BEV Hurdles in Europe

Stellantis (NYSE: STLA) shares slipped nearly 5% in premarket trading Monday after Bank of America (BofA) downgraded the auto giant’s stock from Buy to Neutral, citing mounting issues in Europe and fears of disappointing financial results. The bank also cut its price target dramatically—from €16 to €10, which translates to a drop from $17.25 to $10.78 USD.

According to BofA analysts Horst Schneider and Alexander Jones, Stellantis is heading into a rocky first half of 2025, projecting a 15% year-over-year drop in revenues and a group adjusted EBIT margin of just 2.7%.

“We think consensus estimates will continue to come down after H1 results,” they noted, warning that both the first and second halves of the year are likely to disappoint.

BEV Struggles in Europe – 

European-Spec 2025 Fiat Scudo ICE model. (Stellantis).

BofA sees structural weaknesses in Europe, where Stellantis is trailing competitors in battery electric vehicle (BEV) adoption. The analysts point out that Stellantis’ BEV market share in Europe was below 10% in 2024, and will need to rise to over 45% by 2030 to meet environmental regulations.

But the company’s multi-energy platform strategy—which mixes internal combustion, hybrid, and electric powertrains on the same platforms—is causing cost disadvantages. Combined with a weak product mix and falling sales of high-margin light commercial vehicles (LCVs), this leaves Stellantis in a tough spot.

Cash Burn and More Restructuring? – 

Stellantis Mirafiori Assembly Complex in Turin, Italy. (Stellantis).

Stellantis is still actively reducing inventory, which is expected to drag down trade payables in Q2. BofA forecasts an industrial cash burn of around €2.5 billion ($2.7 billion USD) in the first half of 2025—more than double Wall Street expectations.

The analysts also noted that restructuring costs may rise, especially as the company continues to deal with underused factories in Europe.

North America Offers Some Hope – 

2026 Jeep® Grand Cherokee L High Altitude Tester. (KGP Photography).

There is a silver lining. BofA sees a chance for a recovery in North America, led by upcoming product launches from Jeep® and RAM. However, they caution that the turnaround won’t happen overnight and are labeling 2025 as a “year of transition.”

Their full-year 2025 EBIT forecast is 35% below consensus, and their 2026 projection sits 10% below market expectations.

Currency pressures could also complicate things. A weaker U.S. dollar is expected to work against Stellantis’ financial performance.

Looking Ahead to 2026 and Beyond – 

2026 Ram 1500 Ramcharger Tungsten Crew Cab 4×4. (MoparInsiders).

BofA believes Stellantis could see a strong rebound in 2026, especially in North America, where they project 13% revenue growth—driven by refreshed lineups from Jeep and RAM. That said, tariff impacts remain an unknown.

Looking even further down the road, a complete model overhaul in 2029 or even strategic restructuring—possibly splitting brands or segments—could help lift valuation. The company is expected to present new 2030 targets at a capital markets day later in 2025 or early 2026.

Source: Investing.com

Robert S. Miller

Robert S. Miller is a diehard Mopar enthusiast who lives and breathes all that is Mopar. The Michigander is not only the Editor for MoparInsiders.com, 5thGenRams.com, and HDRams.com but an automotive photographer. He is an avid fan of offshore powerboat racing, which he travels the country to take part in.

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Europe is a mess. The EU bureaucrats are still shoving battery electric drive down everyone's throats. Stellantis can't build want Europeans really want because nobody wants to work for those slave wages they're offering in the Serbian facility. Meanwhile Italian workers are sitting idol. The Italian workers who volunteered to go to Serbia were abruptly sent home because of bureaucratic incompetence.

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I think one of the issues in Europe for Stellantis is they do not have a strong portfolio of luxury BEV offerings, the Maserati EVs turn off that market segment and no one wants and Alfa EV either it seems so they don't have a real volume competitor to Audi, MB or BMW in this sphere (in theory the DS No 8 would be it but the DS brand is basically a non-entity outside France)

they made the right step with the Citroën ë-C3 and Fiat Grande Panda and it's LFP batteries and pricing, but they really need get all their Peugeots & Opels EVs down in price to at least reach parity with Petrol options, using LFP, look into Na-ion and other ways to reduce costs

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