Stellantis Shares Fall 5.78% to 52-Week Low on Weaker EV Outlook
STLA•Stellantis shares fell 5.78% in Milan trading to hit a 52-week low, marking its largest single-day decline in six months. Analysts cut full-year EBIT margin forecasts by 80 basis points after management flagged slowing electric vehicle demand and rising inventories ahead of Q2 delivery results.
1. Stock Plunge to 52-Week Low
Stellantis stock declined 5.78% in Milan trading, reaching its lowest level in a year and marking the steepest single-day drop since January. The move extended the shares’ year-to-date underperformance to over 15%.
2. Analyst Forecast Revisions
Following management comments on slowing demand, analysts trimmed full-year EBIT margin projections by 80 basis points, citing higher production costs and elevated inventory carrying expenses. The revised forecasts lower expectations for annual operating profit by roughly €1.2 billion.
3. Electric Vehicle Demand Pressure
Management highlighted softer order intake for battery-electric models and stretched delivery times, leading to production adjustments at two European plants. Rising EV inventories now exceed 12 weeks’ supply, up from 8 weeks at the start of the quarter.
4. Q2 Delivery and Guidance Implications
Investors will closely watch second-quarter global unit shipments, due next week, for signs of stabilization. Any further shortfall could prompt additional guidance adjustments and affect cash flow targets for the remainder of the year.
