Stellantis restored its 2025 forecast for growth. Why did the stock fall?
Stellantis has estimated its losses due to duties in 2025 at €1.5 billion

Auto concern Stellantis presented its 2025 forecast for the first time since spring, promising shareholders revenue and profit growth in the second half of the year. However, investors were skeptical: against the background of potential losses from US duties and weak sales in North America, the market was waiting for more certainty from the new management of the company.
Details
Stellantis, which owns brands such as Chrysler, Fiat and Peugeot, announced its outlook for the second half of the year, outlining key targets for the first time since April: revenue growth, improved cash flow and improved profitability. The company forecast an adjusted operating margin within a few percent (low single-digit) - up from 0.7 percent in the first half, отмечает The Wall Street Journal. The auto giant revoked its previous full-year forecast in April because of uncertainty caused by the threat of 25 percent duties from the U.S.
Stellantis' expectations have not encouraged investors. Analysts at Jefferies called the company's guidance "vague" and likely to disappoint, reports Reuters. At brokerage Equita отметили, that the qualitative guidance for the second half of the year looks less optimistic than both themselves and the consensus forecast suggested. HSBC analysts pointed to the dilemma facing the company: "In stagnant markets, the more share Stellantis loses, the more it needs to cut costs, but management rhetoric suggests that past cuts [were] too deep as it is," wrote Bloomberg.
Stellantis made a €2.3 billion loss in the January-June period amid a drop in shipments, especially in North America, where sales crashed by 26%. The company lost €300 million in the first half of the year due to U.S. duties, and is waiting for an additional €1.2 billion in losses in the second half - a total of €1.5 billion for the year.
Shares of Stellantis crashed at the opening of trading in Milan by nearly 5%. Subsequently, the fall slowed to 2.5%. At the pre-market in New York, quotations fell by 2%.
Context
A day earlier, on July 28, Stellantis shares fell by 4.2% in New York. This happened against the background of a general negative reaction of investors in the European auto industry to the trade deal between the U.S. and the EU. The agreement calls for a 15 percent duty on imports of many European goods, including cars. Although this rate is almost half of what would have been imposed, traders reacted to the news by selling: shares of Volkswagen, BMW and Mercedes-Benz were down 3.6 percent, 3.3 percent and 3.2 percent respectively at the end of the trading day.
Investors may have been hoping for more favorable deal terms, predicts Barron's. The publication noted that industry representatives also did not express full satisfaction. The German Automobile Association announced that a 15% rate would cost the German auto industry billions of euros annually. In turn, the European Automobile Manufacturers Association emphasized that the duties will continue to have a negative impact on industry in both the EU and the US.
What Wall Street is advising
This week's drawdown in Stellantis shares has not yet affected the recommendations of stock analysts: on July 29, Jefferies reaffirmed Buy rating, UBS and RBC - neutral ratings (not to buy, but not to sell), reports MarketScreener. All three banks also maintained their targets on Stellantis shares: €11.5, €9.7 and €9, respectively.
The MarketScreener consensus rating on Stellantis' stock is Neutral (Hold). The average target price of €9.9 implies a 19.5% year-over-year increase to the July 28 closing price.
This article was AI-translated and verified by a human editor