The automaker Stellantis N.V. (STLA) saw its 2024 sales drop 15% year-over-year to 1.3 million vehicles. Moreover, this performance compares unfavorably with the company’s major rivals, General Motors (GM) and Ford (F), which reported sales growth of 4.3% and 4%, respectively, for the year.
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Breaking Down STLA U.S. Sales
Most of STLA’s brands faced declines in 2024. Sales of Jeep and Ram, the company’s strong-performing brands, were down 9% and 19%, respectively. Further, Chrysler, Dodge, and Alfa Romeo saw even steeper declines, ranging from 7% to 29%.
Nevertheless, Fiat Brand witnessed a 154% increase in sales to 1,528 vehicles, led by demand for the Fiat 500e, a new compact electric car.
Further, Stellantis was able to maintain its leadership position in the U.S. plug-in hybrid market, with a 41% market share.
Stellantis Is Optimistic About 2025
While Stellantis reported an overall decline, it saw some positive momentum in the second half of the year. The company said that retail sales grew 4% during the second half of 2024 compared to the first half. Further, STLA noted that strategic pricing and incentive adjustments reduced dealer inventory levels, paving the way for new vehicle introductions.
Looking ahead, Stellantis is optimistic about its future performance, with a focus on introducing new models such as the fully electric Jeep Wagoneer S, Jeep Recon, and a hybrid Jeep Cherokee in 2025. These new models are likely to boost sales and strengthen the company’s position in the North American market.
Is STLA a Good Stock to Buy?
Turning to Wall Street, STLA stock has a Moderate Buy consensus rating based on seven Buys, 10 Holds, and two Sells assigned in the last three months. At $14.88, the average Stellantis price target implies an 18.75% upside potential. Shares of the company have declined 35.68% over the past six months.
