3 Key Reasons to Buy This Huge Turnaround Story That's Gaining Traction
After shedding roughly 75% of its value during the past three years, it might not take much improvement for Stellantis' stock price to pop.
Overview
After a brutal 2025, Stellantis (NYSE: STLA) Chief Executive Officer Antonio Filosa quickly unveiled a major $70 billion global turnaround plan referred to as "FaSTLAne 2030." The broad strategy was mostly well received, but Wall Street is giving the automaker little credit, as Stellantis stock has dropped nearly 40% since the strategy was announced.
In my opinion, there is very little of Stellantis' turnaround upside priced into the stock, giving investors an opportunity to buy in low, give the company time to execute, and in theory, reap the rewards during the next five years. There's obviously risk in putting faith in the plan, but here are three developments that suggest its recovery is starting to work.
Details
One way Filosa is changing things at Stellantis is by reversing the automaker's insular approach to both engineering and manufacturing. The automaker's new strategy is to add external partnerships to the core of its manufacturing. These partnerships, such as Stellantis' 51% controlling stake in Leapmotor International, a joint venture formed by the Chinese electric vehicle (EV) maker and Stellantis, will help drive down research and development costs, reduce capital expenditures, and even optimize its factory utilization globally.
Source
Originally published at www.fool.com.
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