12 Best EV Stocks to Buy for The Long Term

6) Stellantis N.V. (NYSE:STLA)

Number of Hedge Fund Holders: 24

3-Year Sales Growth: 20.5%

Stellantis N.V. (NYSE:STLA) is engaged in the design, engineering, manufacturing, distribution, and sale of automobiles and light commercial vehicles, engines, transmission systems, metallurgical products, mobility services, and production systems. Michael Jacks from Bank of America Securities reiterated a “Buy” rating on the company’s shares due to Stellantis N.V. (NYSE:STLA)’s strategic focus on establishing a strong recovery by 2025, despite a tough 2024. The analyst believes that the company has made strong progress in inventory management and by adjusting launch schedules for new models.

Furthermore, the expected recovery in adjusted operating income margins and the strategic launches in key markets like the European B-segment and the US muscle car market can fuel growth, opines Jacks. Stellantis N.V. (NYSE:STLA)’s unique approach to the Chinese market via its JV with Leapmotor can provide significant competitive advantages. By partnering with a rising Chinese EV brand, it gains access to the country’s advanced EV and battery production capabilities without the full risks related to direct market participation.

Ariel Investments, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:

“Lastly, shares of multinational automotive manufacturing company, Stellantis N.V. (NYSE:STLA) declined following a significant earnings miss. The company attributed the performance to lower sales, production disruptions from a product overhaul and weak performance in North America. Muted demand for electric vehicles in Europe also weighed on performance. In response, STLA is implementing operational improvement initiatives to bring down U.S. inventory levels through production cuts, consumer incentives and gradual price adjustments. Despite these results, management maintained its previous buyback and dividend commitments. 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 commitment to industry leading profitability, operational excellence, and strategic foresight will continue to enhance long-term shareholder value.”