After peaking at 78 billion in mid-April, the market capitalization of the Franco-Italian-American group has fallen back to 43.6 billion euros. Almost all the gains since the group’s birth in early 2021 have thus been cancelled! Too severe a sanction?
But what is happening to Stellantis, the stock market darling last spring? After peaking at 78 billion in mid-April, the market capitalization of the Franco-Italian-American group fell back to 43.6 billion euros this Thursday, September 5. Stellantis is thus returning to the valuation levels of January 2023 (45 billion). And is dangerously close to the floor of 39 billion, when the group was formed in early 2021 through the merger of PSA and FCA (Fiat Chrysler). All the gains since the merger have therefore almost been cancelled!
Of course, the manufacturer headed by Carlos Tavares is not the only automotive group to see its market capitalization fall. But the fall of Stellantis (-44%) is significantly greater than that of the main competitors. Compared to last April, BMW fell by 30% to 51 billion euros, Volkswagen by 25% to 52 billion, Ford by 19% to 43.5 billion dollars, Renault by 18% to 12.3 billion euros, Toyota by 8% to… 280 billion euros. On the other hand, Tesla, which had fallen by half between its peak in autumn 2021 and last spring, has since increased its valuation by 37% to 687 billion dollars. Despite low profitability in the first half of the year.
Electricity halted
Stellantis is certainly suffering from the stock market’s disaffection for automobile stocks (except Tesla), while the sector is undergoing a technological transformation and the specter of a Chinese tidal wave is destabilizing European manufacturers, but also Japanese, Korean and American ones. The heavy investments made in electrification are also coming up against the growth failure of the “zero emission” car market in Europe. Electric models represent 13.8% of the new vehicle market (over the first seven months of the year) in Europe, compared to 14.3% a year earlier! Furthermore, electric models are not taking off in Japan or the United States.
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- challenges.fr
