Automaker Stellantis (STLA) says that its focus moving forward will be to sell hybrid gas-electric vehicles in the U.S. market.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Stellantis CEO Antonio Filosa said on Dec. 4 that the automaker is focusing on hybrid production in the U.S., a shift from the company’s previous focus on fully electric vehicles. “We truly believe that hybrid is going to be one of the favorite powertrains in the U.S.” said Filosa at an industry conference.
Additionally, Stellantis plans to focus on traditional hybrid vehicles rather than plug-in models that require the battery to be regularly recharged or replaced. Filosa said that the automaker’s own research shows consumer demand for plug-in hybrids remains weak.
Shifting Priorities at Stellantis
Filosa is trying to reverse market-share losses in the U.S. that led to the departure of former Stellantis CEO Carlos Tavares a year ago. Stellantis currently has 14 automotive brands, including Chrysler, Ram and Jeep. It plans to expand its gas-electric hybrid offerings across its various nameplates.
Stellantis isn’t the only automaker that is moving away from fully electric vehicles. Rivals Ford Motor Co. (F) and General Motors (GM) have also reversed course due to weak demand among consumers and shifting priorities and regulations in Washington, D.C. The administration of U.S. President Donald Trump is proposing to dramatically cut fuel economy regulations in America.
Is STLA Stock a Buy?
The stock of Stellantis has a consensus Moderate Buy rating among 16 Wall Street analysts. That rating is based on six Buy, nine Hold, and one Sell recommendations issued in the last three months. The average STLA price target of $11.03 implies 7.43% downside from current levels.
