Stellantis Stock Climbs On Buzz About New Mass-Market Model Plan: Retail Still Cautious

The plan also reportedly includes ramping up the production of hybrid models in Italy.

Shares of Stellantis NV climbed nearly 2% at the open on Tuesday, on track to snap two straight sessions of losses. 

The rally followed reports from Reuters that the automaker is set to unveil a long-term production plan to the Italian government, potentially assigning a new mass-market model to one of its factories in Italy.

Sources familiar with the matter said Stellantis is considering manufacturing the new model at its Pomigliano d’Arco plant near Naples or the Cassino plant south of Rome. 

The plan also reportedly includes ramping up the production of hybrid models in Italy.

Under interim management led by Chairman John Elkann, Stellantis has reportedly been working to repair relationships with dealers, governments, and workers while navigating a challenging market environment. 

Former CEO Carlos Tavares abruptly resigned this month, nearly 18 months before his contract’s expiration, amid boardroom tensions and shareholder disagreements.

Since then, the company has been pursuing partnerships in the EV battery sector, a critical focus area as its core markets in Europe and North America face slumping sales.

Stellantis lowered its annual guidance in September after posting a 27% decline in third-quarter net revenue. 

Adding to the optimism, Reuters also reported that Italy will allocate over 1 billion euros ($1.05 billion) in state funds next year to support its automotive sector, citing Industry Minister Adolfo Urso’s comments during a meeting in Rome on Tuesday with Stellantis representatives.

On Stocktwits, sentiment for Stellantis remains in ‘neutral’ territory, with slight increases in message volume suggesting cautious retail optimism.

As the automaker charts its next steps, the success of its new model strategy will be pivotal in regaining market confidence.

The company’s stock has lost over 40% year-to-date, reflecting ongoing challenges.

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