Jeep maker Stellantis (STLA) is recalling 27,354 Maserati autos in the U.S., citing concerns that the rearview camera does not display images. The NHTSA (National Highway Traffic Safety Administration) fears that this increases the risk of a crash, thus pushing for a recall. The news comes just as the automaker prepares to report its full year Fiscal 2024 results before the market opens on February 26.
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Stellantis will resolve the issue by an over-the-air (OTA) software update, allowing for a quick fix, beginning next month. The latest recall adds to Stellantis’ growing number of vehicles recalled in the past couple of months. In January, the Netherlands-based automaker recalled over 63,000 crossover SUVs (Sport Utility Vehicles) in the U.S. owing to an issue with the loss of drive power caused by the power transfer unit. Similarly, Stellantis recalled more than 30,000 Ram heavy-duty pickup trucks, citing potential brake failure and tracking system issues.
Why Is the Rearview Camera Malfunctioning?
Maserati’s radio software is faulty and has glitches, which is preventing the rearview camera from displaying proper images. This violates the Federal Motor Vehicle Safety Standards as drivers depend on the rearview camera for parking and reversing.
The car’s infotainment system is controlled by the same software that manages the radio functions, giving rise to the issue. A glitch in the radio software is probably causing the rearview camera to falter, increasing the risk of accidents.
The recall affects Maserati’s produced between 2023 and 2025, including Grecale, MC20 Cielo, GranTurismo, Levante, and Ghibli, among others.
Insights from TipRanks’ Bulls Say, Bears Say Tool
Analysts and investors have mixed expectations from Stellantis, ahead of its FY24 results. According to TipRanks’ Bulls Say, Bears Say tool, bulls are encouraged about a potential recovery in earnings and the group’s auto shipments in Fiscal 2025, strategic auto launches where gaps persist, and the fact that STLA stock trades at a steep discount to its rivals Ford (F) and General Motors (GM).
On the other hand, bears are worried about declining shipments and challenges in North America business such as excess inventory issues and price headwinds.
Is STLA a Good Stock to Buy Now?
Analysts remain divided on Stellantis’ stock forecast owing to the company-specific challenges discussed above. On TipRanks, STLA stock has a Moderate Buy consensus rating based on five Buys, seven Holds, and one Sell rating. Also, the average Stellantis price target of $14.45 implies 3.7% upside potential from current levels. Unfortunately, STLA stock has lost 43.1% in the past year.
