Stellantis (STLA) gears to discuss its strategy for electric vehicles Thursday in more detail, with the global EV market poised to boom this decade. Stellantis stock fell.
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The automaker’s EV day starts at 8:30 a.m. ET tomorrow and will be live-streamed at http://evday2021.webstream.fr.
The stakes are high for Stellantis, formerly Fiat Chrysler. It’s seen lagging General Motors (GM), Ford Motor (F) and Volkswagen (VWAGY) that have rushed to bring their first all-electric SUVs, trucks and vans to market. And Tesla (TSLA) continues to dominate despite the proliferation of new EV stocks.
Investors may await word of an electric Ram truck, Jeep SUV and Dodge van. Ford’s F-150 Lightning quickly racked up more than 100,000 reservations after launching in May. It arrives at dealers in the summer of 2022. And the electric Ford E-Transit commercial van, arriving later this year, has more than 20,000 reservations. Reservations for GM’s initial Hummer EV pickup trucks and SUVs also sold out rapidly.
According to Bank of America, the Stellantis EV Day Thursday is a chance for the Italian-American auto giant to explain how it can innovate electric vehicles. That could help to reduce the valuation discount of Stellantis stock vs. GM stock, Ford and Volkswagen (VWAGY), BofA analysts said.
In April, CEO Carlos Tavares vowed Stellantis is accelerating on electrification, committing to an all-electric or hybrid-electric version of almost its entire lineup of vehicles by 2025.
Stellantis’s Fiat brand has already signaled switching to an all-electric lineup by 2030. The luxury Alfa Romeo and Maserati brands are expected to follow.
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Stellantis Stock Falls Ahead of EV Day
Shares dipped 1.3% to 19.55 in Wednesday’s stock market. Stellantis stock cleared an 18.62 flat-base buy point in May but is now pulling back to the 50-day line, according to MarketSmith chart analysis. The relative strength line is just below June highs after rallying in the past year.
GM stock fell 1.2% Wednesday, Ford stock lost 1.5%, Volkswagen rose 0.5%, and Tesla eased 1.7%.
After years of sluggish sales, the adoption of electric vehicles is at an inflection point.
The number of electric cars, buses, vans and trucks on the world’s roads will hit 145 million by 2030, the International Energy Agency estimated in April. That would be up from 10 million in 2020, a year that saw EV sales increase though overall sales fell due to the coronavirus pandemic.
For now, however, electric vehicles remain a relatively tough sell in the U.S. compared with China and Europe.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
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