Focused on EVs, Stellantis Amis to Double Revenue by 2030 — Report

Multinational automotive manufacturing company Stellantis NV (NYSE: STLA) aims to increase its revenue two-fold to €300 billion ($335 billion) per year by the end of this decade, a report published by Reuters said citing the company, which announced a strategy update on Tuesday.

As part of the strategy, Stellantis plans to launch 75 models of battery EVs and sell five million EVs annually by 2030.

It aims to record revenues of €20 billion in China by 2030. Revenues for China, India and Asia Pacific stood at €3.9 billion in 2021.

Further, by the end of the decade, the company anticipates EVs to account for 50% of its sales in the U.S. and 100% in Europe. It expects to achieve this by investing in EV software, using hydrogen fuel cells in heavy-duty trucks and vans, and developing self-driving delivery vehicles with partner Waymo.

Stellantis is also aiming for revenues from its new data business to total €9 billion by 2030, and synergies from its founding merger to reach €5 billion by the end of 2024, a year ahead of the original target.

It expects online sales to make up 33% of its total sales by the end of the decade, and luxury and premium car sales to quadruple during the period. Moreover, by 2031, it aims to reduce its carbon emissions by 50%, compared with 2021.

Carlos Tavares, the CEO of Stellantis, expects the global semiconductor chip shortage to continue into next year.

About Stellantis

Netherlands-based Stellantis was formed in 2021 following the merger of Italian-American conglomerate Fiat Chrysler Automobiles and French automaker PSA Group. Its brands include Chrysler, Jeep, Dodge, Ram, Fiat, Alfa Romeo, Lancia and Maserati, among others.

STLA stock closed 8% lower on Tuesday. Additionally, at the time of writing, it was trading 1% down in the pre-market session on Wednesday.

Analysts’ Take

Last week, Societe Generale (SCGLF) analyst Stephen Reitman maintained a Buy rating on the stock and raised the price target to $31.37 (86.5% upside potential).

Based on 8 Buys and 1 Hold, Stellantis has a Strong Buy consensus rating. The average STLA price target of $28.25 implies 68% upside potential from current levels. Shares have lost almost 15% over the past six months.

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