Fiat and Chrysler automaker Stellantis (STLA) is accelerating the use of AI in its factories by expanding its partnership with French tech firm Mistral.
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Stellantis, the world’s fourth-largest carmaker, has been quick to recognize the wind of change AI has brought to auto manufacturing, and has over the last 12 months been working with Paris-based Mistral AI on several AI-driven projects. This is across vehicle engineering, fleet data analysis, internal car sales and manufacturing.
AI Promises to Speed Up Development
Ned Curic, Stellantis chief engineering and technology officer said the expansion of its collaboration with Mistral would help speed up its industry-data analysis in areas such as customer feedback and manufacturing quality. The hope is that this will then quicken the time needed to develop new innovations and products.
Indeed, the latest initiative from Stellantis and Mistral —a next-generation AI-powered in-car assistant—enables what the partners describe as “natural, conversational interactions, serving as a voice-enabled user manual for drivers”. In short, it means drivers being able to talk to their cars about any problems with the engine or what those worrying flashing warning lights might mean. “Will this technology continue to help us? Of course”, Curic said. “Instead of waiting for analysis for weeks, we can do that in minutes and make a decision in the afternoon.”
A Welcome Lift for STLA Stock
The Stellantis share price was up 1.39% on the news in pre-market trading. It has been down 16% over the last 6 months as the automaker has suffered a number of blows such as the shock exit of CEO Carlos Tavares last December, and the potential impact of a tariffs trade war on sales and supplies.
Is STLA a Good Stock to Buy?
On TipRanks, STLA has a Moderate Buy consensus based on 5 Buy, 8 Hold and 1 Sell rating. Its highest price target is $17.65. STLA stock’s consensus price target is $14.25 implying an 10.12% upside.
