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.

If you enjoyed this look into $STLA be sure to follow as I am only 5 away from unlocking follower assets which seems like a cool feature.

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I've never been more bullish on $GM
Forget the dividend, General Motors continues to report record earnings amid a chip shortage and has stated that they have received immense interest for electric vehicles.

  • 110,000 for the electric Silverado
  • 59,000 for the Hummer EV (both pickup and SUV)
  • 25,000 for their BrightDrop electric cargo van

With an ambitious goal of selling 1 million electric vehicles, some will laugh at it while others (like me) find it attainable. General Motors has many factories and has many resources to invest in newer factories. At the same time, they have a large dealership network and are also investing heavily in opening more factories.

General Motors was once the No. 1 automaker in terms of sales volume for a long time, until Toyota took that spot in 2021. As CNN Money writes, General Motors held that position " for nearly a century through the Great Depression, wars, numerous recessions and its own 2009 bankruptcy and federal bailout."

Many think that $TSLA will remain the largest automaker for the foreseeable future. The issue with those views is that Tesla has 4 models and those models are starting to lose their appeal as competition comes in. The only reason why competition among EVs wasn't as fierce as what many of the bears predicted was because Tesla has better supply chains suited for EVs while the rest had supply chains that were most suited for ICE vehicles.

Once the supply chain issues ease, Tesla's competitors can ramp up production and start flooding the market with more vehicles. $LCID $F and $RIVN are in their early stages of delivering their electric vehicles and from seeing them and talking to the owners of those vehicles personally, the competition is more threatening than many realize. For Lucid specifically, I hear more about how they give consumers more bang per buck as the cars come with leather seats and other luxury features that Tesla lags in and for now, they allow people to stand out in their wealthy neighborhoods.

It will be exciting to see $FSR and $STLA start delivering their first electric vehicles soon. If you want to learn more about Fisker, check out my write-up.

To conclude, the future is very bright for General Motors. EVs will position the company to benefit from a bigger sales cycle for the auto industry as many look forward to switching their gas vehicles for electric. I'm highly optimistic that they can meet their aggressive sales goals.
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