Shares in automaker Stellantis (STLA) drove higher in pre-market trading today as it said it was expanding its strategic partnership with China’s Leapmotor to cut EV costs in Europe.
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Brand New EV
The Chrysler and Jeep maker said production at its Zaragoza plant in Spain would be increased, including an all-new electric battery-powered Opel C-SUV which would be added on a new line alongside Leapmotor’s C-SUV B10 model. Production on the Opel vehicle could begin in 2028.
Separately, Stellantis said it was discussing transferring ownership of a site in Madrid to its venture with Leapmotor.
In October 2023, Stellantis became the single largest shareholder of Leapmotor by acquiring an approximately 21% stake. At the same time, Leapmotor International (“LPMI”) was launched as a 51% Stellantis / 49% Leapmotor joint venture with exclusive rights for the sale and manufacturing of Leapmotor products outside Greater China.
The changes could pave the way for production of multiple Leapmotor models in Spain, helping the companies meet stricter European Union ‘Made in Europe’ rules on local manufacturing.
Localized European Manufacturing
Leapmotor may produce its B10 SUV at the Zaragoza plant as early as 2026, Stellantis said. The partners will also deepen cooperation on purchasing to cut costs by combining China’s EV supply-chain strengths with European manufacturing.
Antonio Filosa, Stellantis CEO, commented: “This plan to expand our successful partnership with Leapmotor – a trusted peer and one of the fastest-growing, most respected new energy vehicle producers globally – is a true win-win for both of us. It is expected to support production and advance localization in Europe of world-class manufacturing of electric vehicles at affordable prices to meet customers’ real-world needs.”
“This is clearly a first step,” said Michael Dean, an analyst at Bloomberg Intelligence. “It would make sense to expand the Leapmotor partnership to other group brands as competition will only deepen in Europe.”
Stellantis will hope that the move will give some added push to its share price, which has struggled this year as the company posted an annual 2025 loss and issued a huge $26 billion writedown related to EV production.
Is STLA a Good Stock to Buy Now?
On TipRanks, STLA has a Moderate Buy consensus based on 6 Buy and 11 Hold ratings. Its highest price target is $11.76. STLA stock’s consensus price target is $9.32, implying a 24.57% upside.
