Stellantis N.V. (STLA) shares are trading lower today in the pre-market trading session following the release of another disappointing U.S. new vehicle sales report. The company sold 305,294 vehicles in Q3, down from 380,563 in the year-ago quarter. This reflects a decline of 20% year-over-year, following a 21% decline in Q2.
Don't Miss our Black Friday Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
It is worth highlighting that most of STLA’s brands faced declines in Q3. Jeep and Ram, typically strong performers, saw drops of 6% and 19%, respectively. Further, Chrysler, Dodge, and Alfa Romeo experienced even steeper declines, ranging from 29% to 47%.
Nevertheless, Fiat Brand registered a 118% increase in sales to 316 vehicles. Also, Stellantis was able to increase its market share from 7.2% to 8% during the third quarter.
STLA Tackles Market Challenges
In addition to the U.S. sales report, Stellantis revealed that it successfully reduced dealer inventory by over 50,000 units during the quarter, thanks to an incentive program across its U.S. brands.
To further enhance performance, the company is rolling out new electric vehicles, including the Ram 1500 REV, while also lowering prices on select models to boost affordability and drive demand.
Despite these initiatives, Stellantis’ success will rely on its ability to navigate current market challenges and execute its strategic plans effectively.
Is STLA a Good Buy?
Turning to Wall Street, STLA stock has a Moderate Buy consensus rating based on nine Buys, seven Holds, and two Sells assigned in the last three months. At $22.19, the average Stellantis price target implies a 62.8% upside potential. Shares of the company have declined 37.53% year-to-date.
