Stellantis $STLA 2030 Plan
One of the largest automakers in the world recently put on an event where they detailed how they intend to bolster EV manufacturing, cut down on emissions, as well as cut costs while maintaining an impressive range of vehicles at all different price points.
For those of you who may not know what Stellantis is it is the result of a merger of Fiat Chrysler and Peugeot SA. Below are some of the brands they own.
An impressive offering to be sure.
But on to their recently announced plan.
Lower Carbon Emissions. Aiming for 100% EV sales in Europe and 50% in the US. Best Customer Service. A revenue double and getting to a double-digit margin.
The double-digit margin shouldn't be too hard given their current 9.5% net margin already. The revenue double might be a little harder.
The next goal is to lower pretty much all costs involved with the shipping, building, and distribution of EVs in order to lower the overall cost to the end consumer.
Stellantis refers back to an older presentation where they talk about building a "House of Brands" again we see the brands they own as well as their 100+ planned new car launches over the next 8 years.
Of course, they want to really emphasize this plan to cut emissions in half by 2030 and become net zero by 2038. For a car company to actually become net-zero would be incredibly impressive.
An interesting idea that Stellantis presents is what they call a "Circular Economy." This is the company's attempt to increase both the life of the cars as well as be able to generate revenues from the recycling process at the end of a car's life.
In January of this year, $STLA made a large investment in Auto Reconditioning company StimCar for this exact purpose.
Stellantis also reaffirms its plan to spend $30b+ on EVs in the next 3 years. This includes 5 Gigafactories.
This plan also includes installing thousands of fast chargers all across Europe.
Again this comes with the goal of having 4 platforms of vehicles to suit every customer's need both commercial and personal.
The long-term goal is to have a dominant presence in every major market across the globe.
$STLA certainly has the financial firepower to achieve these goals too.
That is why I believe Stellantis to be a formidable opponent in the EV space. Given the brand recognition as well as the cash pile waiting to be spent.
While I do not yet have a position in the company I plan on picking up shares in the near future. Given the recent downturn, the company is trading at a P/E of 2.84 while having a respectable 10.1% ROIC.
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