Stellantis Stock On Track To Hit Over 2-Year Low After CEO Abruptly Steps Down
Although Stellantis’ stock hit a record high of about $29.50 in March this year, it has lost nearly 25% of its value since Tavares assumed control nearly four years ago.
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FollowStellantis N.V. ($STLA) shares dropped over 8% pre-market Monday, on track to hit their lowest level since October 2022, after the unexpected resignation of CEO Carlos Tavares.
The world’s fourth-largest automaker cited “different views” between Tavares and the board as the reason for his departure.
A Special Committee is managing the search for a permanent CEO, expected to conclude by the first half of 2025.
In the interim, a new Executive Committee chaired by Stellantis board chairman John Elkann will lead the company.
Despite the leadership shakeup, Stellantis reaffirmed its 2024 full-year guidance issued on Oct. 31.
STLA sentiment and message volume Dec 2 premarket as of 7:15 am ET | source: Stocktwits
On Stocktwits, sentiment for STLA plummeted to an ‘extremely bearish’ (20/100) score, the lowest in over a year. Message volume surged as some users reacted strongly.
One comment likened the automaker’s plight to the pre-revival days of Chrysler under Lee Iacocca in the 1980s, calling for similar leadership to emerge.
Another criticized the reported $100 million severance package for Tavares, calling it a “shame.”
The world’s fourth-largest carmaker, owning brands like Jeep, Dodge, Fiat, Chrysler, and Peugeot, has faced significant hurdles.
Sales in its core markets of Europe and North America have plunged.
The company lowered its annual guidance in September, just a month before it reported a 27% decline in Q3 net revenue.
Tavares had led Stellantis since its creation in January 2021 from the merger of PSA Group and Fiat Chrysler Automobiles. Before Stellantis, he helmed PSA Group, where he was credited with turning around the French automaker.
Although Stellantis’ stock hit its record high of about $29.50 in March this year, it has lost nearly 25% of its value since Tavares assumed control nearly four years ago.
STLA shares have declined over 42% year-to-date, reflecting broader challenges in the automotive sector and growing uncertainty about the automaker’s path forward.
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