Stellantis Stock Skids As US Pulls Tax Credits for Some EVs, Hybrids: Retail Retains Confidence
Previously, these models qualified for credits of up to $3,750 under President Joe Biden’s Inflation Reduction Act.
Stellantis NV’s (STLA) U.S.-listed shares dropped over 2% to reach one-month lows during early Friday trading after Bloomberg reported that certain EVs and hybrids from the company are no longer eligible for U.S. tax credits.
Previously, these models qualified for credits of up to $3,750 under President Joe Biden’s Inflation Reduction Act.
However, recent changes tightened domestic sourcing requirements for battery components and raw materials, impacting Stellantis, as well as Nissan and Volkswagen.
The number of EVs and hybrids qualifying for tax credits has dropped to 18, down from 22 in 2023, per the report.
STLA sentiment and message volume Jan 3 as of 8:15 am ET | source: StocktwitsDespite the setback, sentiment for Stellantis remained ‘bullish’ on Stocktwits, with ‘high’ message volume suggesting dip-buying interest among retail investors.
One watcher even claimed the stock is worth more than thrice its current levels.
According to Koyfin data, Stellantis trades at a trailing P/E multiple of 2.6x and a forward multiple of 4.4x. Its relative strength index is around 38, signaling oversold conditions.
However, the company faces broader challenges, including product delays and inventory issues in the U.S., which contributed to the ouster of its CEO last year.
In Europe, Stellantis’ passenger car production in Italy fell 46% in 2024 to its lowest level since 1956, amid weak demand for models like the electric Fiat 500, Reuters reported.
Reports in December suggested that Stellantis is planning a long-term production strategy for Italy, which may include assigning a new mass-market model to one of its factories.
Stellantis stock lost over 40% in 2024 and has started 2025 with further volatility. However, retail investors appear to remain hopeful for a turnaround.
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