Analyst Note| Richard Hilgert |
No-moat-rated Stellantis provided investors with more details on its electric vehicle strategy which, in our view, improves the company’s competitive position in a relatively short period of time as predecessor Fiat Chrysler had lagged competitors’ EV development. In 2025 and 2030, Stellantis targets 40% and 70% sales mix of electrified vehicles, respectively. Management further commented that in 2030, 80% of the 70% would be battery electric and 20% would be plug-in hybrid. The company also said that first-half 2021 adjusted operating margin will exceed the full-year guidance range of 5.5% to 7.5%, mainly attributable to favorable pricing and product mix despite the microchip shortage constraints on unit production.