We recently compiled a list of the 5 Best EV Stocks for 2025. In this article, we are going to take a look at where Stellantis N.V. (NYSE:STLA) stands against the other EV stocks.
The automotive industry is on a steady growth path, with the electric vehicle (EV) segment leading the charge. Growing momentum and technological advancements are there to adhere to consumer demands, alongside new government policies. As the industry moves towards a cleaner and sustainable future, it opens the door for investors to profit from it.
Around the end of 2024, the number of EVs sold globally was predicted to surpass 17 million, which is a significant jump from 13 million in 2023. Though the electric vehicle witnessed an increasing number of challenges last year, 2025 could bring new opportunities for the industry. Stepping into the new year could help revitalize investor sentiment for the EV market, and bolster investor confidence going forward.
A close-up view of a modern automobile with its sleek curves and luxurious body.
Stellantis N.V. (NYSE:STLA)
One of the larger players in the EV market is Stellantis (STLA). With 14 iconic brands in its portfolio, the company is following ambitious EV plans. As part of its Dare Forward 2030 initiative, Stellantis plans to invest over €50 billion ($51.53 billion) in electrification and is aiming to offer over 75 different electric vehicles in primary markets.
Stellantis’ Q3 2024 report shows a drop in numbers when compared with previous periods. Total net revenue for Q3 2024 declined by 27% to $34.01 billion (€33 billion) compared to Q3 2023. The drop in revenue was largely attributed to lower vehicle shipments and the impact of foreign exchange fluctuations.
Despite these challenges, the reception of new products has been positive, showing an increase in interest in new models, including several electric powertrains. Despite showing numbers below the company’s potential, Stellantis remains dedicated to addressing operational issues and further electrifying its upcoming vehicle line-ups, including several legacy models.
STLA started 2024 around $23.00 and had an upward trend for most of Q1, nearly peaking at $30.00 per share. However, throughout much of last year, share performance waned, falling down to $13.00 per share during the last three months of 2024.
A closer look at STLA fundamentals shows that the company has been struggling to maintain a positive balance sheet. The negative results have mostly been attributed to slower demand and sales in major markets, including the United States. However, the company projects that a more business-friendly friendly environment under the Trump administration would help them to bolster income and near-term profitability.
For the period ending June 30, the company reported a 48.51% decline in year-over-year net income at $2.81 billion. Return on Assets has remained in the positive range at 4.78%, with return on capital of 8.63%. Looking ahead, there’s plenty of room for improvement, and the changing political scene in the U.S. could bring much-needed relief for the automaker.
Conclusion
As the EV market continues to expand at a fast pace, investing in EV stocks offers a unique opportunity for investors to capitalize. The transition towards sustainable transport, followed by the supporting industries, means that the EV segment is on a growth path. This is good news for investors looking to invest in this segment, and today’s five stocks can be an excellent option that can result in a solid profit.
Overall STLA ranks 3rd on our list of the best EV stocks to buy. While we acknowledge the potential of STLA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than STLA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Disclosure: I have a tiny position in Tesla. No positions in any other stocks. This article is originally published at Insider Monkey.
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