Stellantis
Note: This is a daily stock update and the information stands true as of 02/12/24, 09:00 CET.
Company Update:
Carlos Taveres left Stellantis one year earlier than previously scheduled. The group will be run by a committee led by John Elkann (who will become interim CEO) until a replacement is appointed in late H1 2025. The issues of Stellantis are well known, notably the large increase in inventories in the US. It is possible ther was a disagreement between the top management and the board on the decisions to be made to tackle these issues.
Expert Opinion:
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Company Update:
Carlos Taveres left Stellantis one year earlier than previously scheduled. The group will be run by a committee led by John Elkann (who will become interim CEO) until a replacement is appointed in late H1 2025. The issues of Stellantis are well known, notably the large increase in inventories in the US. It is possible ther was a disagreement between the top management and the board on the decisions to be made to tackle these issues.
Expert Opinion:
It is likely the board will do some kitchen sinking and will put the blame on the departing CEO. I therefore expect that Stellantis will miss its H2 guidance. The market remains extremely challenging. In China, (a market where Stellantis isn’t), we have early signs of a price war looming. Tesla and BYD announced 0% loans and discounts on certain models in order to make their sales target. This pricing pressure is also likely to ripple through other markets as Chinese car manufacturers will try to sell more and more vehicles outside China.
Note that this is also a negative for Exor (Holding, BUY, €21bn mkt cap, 44% upside) as a significant part of the funding (2/3) is derived from Stellantis and the dividend stream is therefore key to Exor. Any risk on that stream will likely boost the discount on Exor.
For daily updates, subscribe to our newsletter and for detailed daily updates, reach out to us at sales@alphavalue.eu
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Alphavalue Morning Market Tip
Solid start of 2025 with signs of recovery in key markets.