Netherlands-based automaker Stellantis N.V.’s (STLA) shipments in the fourth quarter of 2024 fell 9% compared to last year. The Jeep and Ram maker shipped 1.395 million units in the last three months of the year, while its sales are expected to witness a 5% decline in the quarter. However, the fall in shipments was much better than the 20% year-over-year decline recorded in Q3 2024.
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Stellantis is undertaking rigorous inventory reduction measures in the U.S. and launching new products in Europe to reduce temporary production gaps. Stellantis defines shipments as vehicles delivered to dealers, distributors, or directly from the company to retail and fleet customers, all of which are reported as direct revenues.
Breaking Down Stellantis’ Geography-Wise Shipments
Considering the geography-wise shipment estimates compared to last year, North America reported a massive 28% decline, with Enlarged Europe showing a 6% fall. Meanwhile, shipments to Middle East & Africa remained flat, while South America reported a 12% growth. At the same time, shipments to China and India & Asia Pacific fell by a drastic 33%. Also, Q4 shipments of Maserati fell by a notable 55% compared to 2023.
The company stated that most of its U.S. inventory normalization mechanism was over, and it was set to launch newer products from Jeep, Ram, and Dodge this year. Interestingly, Stellantis is witnessing a meaningful demand trend for its new model launches in Europe.
Insights from TipRanks’ Bulls Say, Bears Say Tool
According to TipRanks’ Bulls Say, Bears Say tool, analysts and investors remain split about their views on Stellantis. The bulls are encouraged by the potential to sustain its free cash flows, solid upside potential from new launches, and cost efficiencies.
On the other hand, the bears are concerned about Stellantis’ performance in the U.S. market, where it raised prices and was plagued with high inventory levels. Moreover, the abrupt stepping down of the CEO puts Stellantis leadership in a cautious position. Meanwhile, intense competition and pricing wars continue to impact the stock’s performance.
Is STLA a Good Stock to Buy Now?
Analysts remain divided on Stellantis stock owing to the reasons discussed above. On TipRanks, STLA stock has a Moderate Buy consensus rating based on five Buys, nine Holds, and one Sell rating. Also, the average Stellantis price target of $14.52 implies 13.9% upside potential from current levels. In the past year, STLA shares have lost 37.3%.
