Stellantis (STLA) Plunges Amid Profit Warning and Market TurmoilStellantis (NYSE: NYSE:STLA ), the parent company of iconic brands such as Chrysler and Jeep, is facing a stormy outlook as the global automotive market is hammered by competition and declining industry dynamics. On Monday, the company shocked the market by issuing a profit warning and slashing its fiscal 2024 outlook, sending its stock plummeting by over 13% in early trading.
The North American Menace
At the heart of Stellantis' woes lies a deteriorating North American market. The company announced it is accelerating the reduction of its bloated North American inventory, a move driven by excess supply of Jeep Wranglers and Grand Cherokees. The company’s fiscal 2024 adjusted operating income margin, previously expected to reach double-digit levels, has been revised down to a modest 5.5% to 7.0%.
Competition from Chinese automakers has intensified, further complicating Stellantis’ efforts to stabilize its North American operations. Add to that the pressure from labor disputes, with the United Auto Workers (UAW) threatening a potential walkout, and Stellantis is being forced to make tough decisions to survive.
The company's effort to "normalize" its inventory aims to reduce dealer stock to 330,000 units by the end of 2024, an earlier-than-planned move to balance supply and demand. While such a shift is necessary, it also underscores deeper systemic challenges faced by Stellantis (NYSE: NYSE:STLA ) in a sluggish automotive industry.
Key Risks:
- Increased competition from Chinese EV makers.
- Rising labor issues with UAW votes looming on potential strikes.
- Legal challenges, including a class-action lawsuit for alleged securities fraud, which further tarnishes investor confidence.
Technical Analysis
The technical landscape for Stellantis isn’t much brighter. As of Monday, the stock has dropped 13.51% and remains in a clear downtrend. The stock shows a sharp bearish gap, signaling significant selling pressure as investors react to the gloomy outlook. With a Relative Strength Index (RSI) of 32.85, the stock is approaching oversold territory, but not quite enough to suggest a bounce is imminent.
Additionally, Stellantis (NYSE: NYSE:STLA ) is trading below its key moving averages—50-day, 100-day, and 200-day—indicating a persistent downtrend and a lack of support from technical buyers. The broader chart pattern shows a lack of recovery signs, and bearish momentum seems to be intensifying.
What’s Next for Stellantis?
In the near term, the outlook for Stellantis (NYSE: NYSE:STLA ) remains bleak as the company wrestles with multiple challenges. While management’s efforts to rightsize North American inventory and focus on efficiency may stabilize operations in the long run, investors should remain cautious given the broader industry headwinds, labor unrest, and growing legal battles.
Conclusion
Stellantis (NYSE: NYSE:STLA ) is facing a perfect storm of inventory issues, labor conflicts, fierce competition, and legal troubles. While the company is making moves to address these issues, its reduced profit forecast and the stock’s technical position indicate more pain ahead for investors. A recovery may be possible in the long term, but for now, caution is key as the company navigates these turbulent waters.
STLA
STLA 1H Swing Long Aggressive CounterTrend TradeAggressive CounterTrend Trade
- short impulse
+ biggest volume T1
+ biggest volume Sp?
+ weak test closed 2 ticks below support level
+ first bullish bar closed entry
- resistance level
Calculated affordable stop limit
1 to 2 R/R take profit
Daily countertrend
"- short impulse
+ volumed TE/T1 level
+ support level"
Monthly trend
"+ long impulse
+ T2 level
+ 1/2 correction
+ support level"
STLA @NYSE
Sell Limit 17.40, GTC
Sell Stop 16.53 LMT 16.84, GTC
STLA Long Swing 1H Aggressive CounterTrend TradeAggressive CounterTrend Trade
- short impulse
- unvolumed TE / T1
+ support level
+ biggest volume Sp
Calculated affordable stop limit
1 to 2 R/R take profit
Daily CounterTrend
"- short impulse
+ volumed TE/T1 level
+ support level
- 1 bar reversal?
Monthly trend
"+ long impulse
+ T2 level
+ 1/2 correction
+ support level"
STLA @NYSE
Sell Limit 17.00, GTC
Sell Stop 16.61 LMT 16.75, GTC
I don't want to run it more than 1 to 2 R/R since 1 bar reversal on daily.
PORSCHE - P911 - German Auto IndustryWith current issue on tariffs between EU & China - it will be a daring move to buy and European Car stock. It is hard to predict how those discussions will end given the current shift in the EU political landscape.
DAX broke records but P911 was on a downtrend forever. Profitable, dividend play. If to chose any EU auto stock RACE (Ferrari) STLA and Mercedes would be top of the list along with P911.
Once the trend line breaks, ideal entry would be on the retest. The last extended wick might have marked a local bottom
STLA 1H Long Aggressive CounterTrend TradeAggressive CounterTrend Trade
- short impulse
+ volumed T1 level
+ volumed Sp
+ weak test
+ first bullish bar closed entry
Calculated affordable real stop loss
1 to 2 TP before volume zone
Context on Daily:
"- short impulse
+ monthly support level
+ 1/2 correction monthly
+ biggest volume T1
+ biggest volume Sp"
Context on Monthly
"+ long impulse
+ SOS level
+ 1/2 correction?
+ support level"
Stellantis Inks Multi-Billion Euro Deal With Ayvens Stellantis ( NYSE:STLA ), the global automotive powerhouse, has inked a transformative deal with leading leasing and fleet management company Ayvens. The agreement, announced recently, charts a course for the sale of up to 500,000 vehicles across Europe within the next three years, marking a significant milestone in the realm of sustainable mobility.
The multi-billion-euro frame agreement between Stellantis ( NYSE:STLA ) and Ayvens heralds a new era of collaboration aimed at reshaping the landscape of European transportation. Under the terms of this landmark deal, Ayvens’ affiliates will procure vehicles from Stellantis' ( NYSE:STLA ) illustrious stable of brands, including Alfa Romeo, Citroën, DS Automobiles, FIAT, Jeep, Lancia, Opel, Peugeot, and Vauxhall. This strategic partnership is not merely transactional; it represents a convergence of vision between two industry leaders committed to driving innovation and sustainability.
Central to this collaboration is the emphasis on integrating Stellantis’ cutting-edge range of sustainable vehicles into Ayvens’ long-term leasing fleet, thereby advancing a shared commitment to eco-conscious transportation solutions. From city cars to SUVs and vans, each vehicle supplied will be imbued with the latest advancements in software, infotainment, and connectivity technology, ensuring a seamless and enriching driving experience for consumers.
Stellantis ( NYSE:STLA ) CEO Carlos Tavares articulated the significance of this partnership, stating, “This collaboration empowers both current and prospective Stellantis brand customers to experience our latest innovations first-hand, from advanced propulsion to seamless connectivity and unparalleled comfort.” Indeed, this sentiment underscores the overarching objective of enhancing customer experience while driving positive environmental change.
Beyond its immediate commercial implications, this agreement holds profound significance within the broader context of Stellantis’ strategic vision. It comes on the heels of the company's robust 2023 earnings results, which showcased a commendable 6% increase in net revenues and a consolidated shipment volume surge of 7%. Despite encountering challenges such as the UAW strike in 2023, Stellantis ( NYSE:STLA ) has demonstrated resilience and agility, underscoring its capacity to navigate tumultuous market conditions effectively.
Furthermore, this deal aligns seamlessly with Stellantis’ ambitious strategic plan to invest over €50 billion in electrification over the next decade, culminating in a 100% passenger car battery electric vehicle (BEV) sales mix in Europe by 2030. By forging strategic partnerships with industry leaders like Ayvens, Stellantis ( NYSE:STLA ) reaffirms its commitment to driving the transition towards sustainable mobility while simultaneously fortifying its market position and driving long-term value for shareholders.
In conclusion, the collaboration between Stellantis ( NYSE:STLA ) and Ayvens represents a paradigm shift in the automotive landscape, characterized by innovation, sustainability, and strategic foresight. As both companies embark on this transformative journey, they stand poised to redefine the future of mobility, setting new benchmarks for industry excellence and environmental stewardship.
📈Trend continuation for STLAHey guys,
I previously posted a larger degree bullish move for NYSE:STLA and this is a lower degree bullish move along the way that can be taken.
We see the following indicators that increase the probability of a bullish move,
1. Nice clean larger degree impulse
2. Clear corrective structure down to 61.8%
3. Impulse on lower degree breaking out of larger degree trend line
4. Lower degree correction breaking previous high
Stellantis: Bearish ABCD with Multiple Monthly ConfirmationsStellantis: The Nvidia of Autos has formed a Bearish ABCD that is visible on the Monthly Timeframe with MACD Bearish Divergence and Bearish PPO Confirmation. If this plays out, we could see this go towards the C level, which aligns with the 0.786 retrace at €4.48
STLA - Ascending triangle - Long termOn the weekly timeframe of the STLA chart, we can see an ascending triangle forming. An ascending triangle is a bullish formation.
It's interesting to watch this asset during 2023 for the price to break out of the triangle to the upside. The breakout-line is shown on the chart. When this happens the pattern gets confirmed and trade can be entered by taking a long position. This is a long-term trade.
See all further details on the chart.
Good luck!
Renault to breakdown.Renault - Intraday - We look to Sell a break of 26.79 (stop at 27.56)
Short term momentum is bearish.
There is no sign that this bearish momentum is faltering but the pair has stalled close to a previous swing low of 26.90.
Bespoke support is located at 27.00.
A break of 26.90 is needed to confirm follow through negative momentum.
Daily signals are mildly bearish.
The bias is to break to the downside.
Our profit targets will be 25.01 and 24.51
Resistance: 28.00 / 29.00 / 30.00
Support: 27.00 / 26.00 / 25.00
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STLA about to get some love? Breakout on the HorizonMIL:STLA
A basic look at STLA is showing the MACD green and strengthening
The 12 EMA just crossed over the 26 EMA
Resistance:
20.53
20.80
21.29
21.99
Support:
18.81
18.83
17.59
17.13
Breakup Zone: 20.80-21
Breakdown Zone: 18.83-18.50
Currently at 20.29
$F beginning to outperform peersF compared to the etf CARZ which represents the overall auto industry has broken with strength a long downward trend in the performance of F in comparison to the industry and it has done so with gusto. I believe this trend in Ford's outperformance will continue.
F-150 Lightning will be one of the number one selling EV's. Ford sold 780,000 F150's in 2020 alone despite the supply chain/chip issues and pandemic. It's going to be a monster of a profit puppy.
There also appears to be an emerging golden cross on the 1-month chart.
STLA | Stock reviewSTLA is the 2nd biggest vehicles manufacturer in Europe, after VW.
It includes several major brands, such as Citroen, Chrysler, Mazerati, Fiat busses, recently Peugeot was added to the list.
It has a good PE ratio (4.3), no debts, BUT very low net income.
Recently STLA stock decreased in price, probably because of the low net income.
An interesting stock to watch.
Please share your thoughts about near future of this stock.