10 Best Autonomous Driving Stocks To Buy According To Short Sellers

3. Stellantis N.V. (NYSE:STLA)

Short Interest as % of  Shares Outstanding: 0.79%

Number of Hedge Fund Investors In Q2 2024: 31

Stellantis N.V. (NYSE:STLA) is one of the biggest car companies in the world and operates through well known brands such as Alfa Romeo, Fiat, Jeep, Maserati, and others. This provides it with one of the biggest moats to implement autonomous driving technologies, and on all ends of the spectrum from luxury cars to affordable ones. Stellantis N.V. (NYSE:STLA) has also been operating in the autonomy industry for three years after it announced its AutoDrive platform in 2021. It is also making large strides in the US, and plans to become the first car company in America to offer Level 3 autonomous driving in 2025. L3 systems enable a hands and eyes free driving experience, and if its rollout is successful (depending on state level regulations), then Stellantis N.V. (NYSE:STLA) will have gained a sizeable advantage over even Tesla. Yet, these systems also shift accident liability on the car company, and its pure play nature as a car company leaves it vulnerable to cyclical downturns. This also makes it unsurprising that Stellantis N.V. (NYSE:STLA)’s shares are down 31% year to date, and any recovery depends on the global economic environment as indicated by economic growth and lower interest rates.

Ariel Investments mentioned Stellantis N.V. (NYSE:STLA) in its Q2 2024 investor letter. Here is what the firm said:

“Finally, multinational automotive manufacturing company, Stellantis N.V. (STLA), fell in the quarter as higher interest rates in the U.S. and tapering demand for high-volume combustion engine models resulted in elevated U.S. inventory levels. Nonetheless, pricing outperformed expectations and management reiterated full-year guidance of double-digit adjusted operating profit margin and positive free cash flow. Although we expect discounting to increase as U.S. inventory ages, we maintain a constructive view on the company. We believe STLA’s strong global footprint and unwavering dedication to leading the industry in profitability, operational excellence, and strategic foresight will continue to enhance long-term shareholder value.”