Stellantis shares fell to €4.43 in the first trading session after the mid-August holiday weekend, dropping more than 4% and confirming an especially difficult month for the group. The latest decline pushed the monthly loss close to 12%, while the stock has fallen around 34% over six months and roughly halved since the beginning of the year, despite some signs of improvement in sales and quarterly results.
Stellantis stock drops again as market doubts grow over North American recovery
Compared with the €27 reached in March 2024, the overall decline now exceeds 75%, and the latest lows have yet to trigger a sustained recovery. Bernstein downgraded the stock to underperform, while UBS moved its rating to neutral. Both highlighted several risks, including persistently high dealer inventories, the pace of new model launches and a North American recovery that continues to progress more slowly than expected.
Moody’s and Standard & Poor’s also lowered Stellantis’ debt ratings in recent months, adding another reason for investors to remain cautious. An analysis published by Investing using Consob data places Stellantis among the most heavily shorted stocks on the Milan exchange, with net short positions equal to 5.38% of the company’s share capital.
The latest quarterly results showed improvements in revenue, profit and cash generation, but profitability remains weak, particularly in Europe. Stellantis’ ability to meet its 2026 targets will therefore depend heavily on performance during the final months of the year and on whether the company can turn recent accounting improvements into a more meaningful recovery in margins.
In South America, Stellantis is reportedly reviewing its technology strategy as Chinese automakers continue to gain ground. The group may increase its reliance on electrification and bioethanol to strengthen its position in the region. Jeep appears particularly exposed to that pressure and has lost ground in several markets, including Brazil.
The situation in the United States adds further challenges. Stellantis must manage the costs of a recall involving nearly one million vehicles over a rearview camera software problem while also revising plans for its Belvidere plant. Reopening the Illinois factory will require $800 million, up from the original estimate of $600 million, while the start of production has moved from 2028 to 2029.
Unifor also claims that Stellantis is reassessing the future of its Brampton plant in Canada, which has remained idle since 2023 and affects around 3,000 workers. Stellantis continues to invest and prepare new products, but investors are still waiting for clearer evidence that North America is recovering, dealer inventories are falling and profitability is improving.
