Key Takeaways
- Stellantis reported U.S. sales slumped 20% year-over-year in the third quarter as all of its brands except Fiat posted declines.
- The automaker will continue to offer incentives begun in the beginning of the quarter through the rest of the year.
- Barclays analysts downgraded the stock, saying they see no sign of recovery until the first half of next year at the earliest.
Stellantis (STLA) shares fell Thursday after the automaker’s U.S. unit reported a big drop in sales as all but one of its brands declined. The stock was also downgraded by Barclays.
FCA US LLC said third-quarter U.S. vehicle sales decreased 20% from a year ago to 305,294. Chrysler sales sank 47%, Dodge sales lost 43%, Alpha Romeo sales fell 29%, and Ram truck sales were down 19%. Even the popular Jeep brand saw a 6% decline. Only Fiat was in positive territory, with sales jumping 118%, but only to 316 units.
Matt Thompson, head of U.S. retail sales, said the company introduced “an aggressive incentive program” at the beginning of the quarter, which helped lower inventories by more than 50,000 units, or 11.6%. He noted the incentives will continue through the rest of the year.
Barclays Downgrades Stellantis Stock
Following the news, Barclays cut its rating on the stock to “equal weight” from “overweight,” and slashed the price target to 12.50 euros ($13.79) from 23.00 euros ($25.38).
Barclays analysts said that “we got wrong-footed” on the automaker, conceding they were too slow to acknowledge its U.S. inventory issue and eroding European Union (EU) and U.S. market shares.
They also pointed to the company’s warning on Monday that full-year profit would be below previous guidance. The analysts added that they see no real proof of a recovery for Stellantis until at least the first half of 2025.
Shares of Stellantis fell 4% Thursday afternoon to $13.07, their lowest level in nearly two years.
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