Auto Giant Stellantis (STLA) Warns of $2.7 Billion Loss Due to U.S. Tariffs
Elevate Your Investing Strategy:
Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
The Europe-based company behind vehicle brands such as Dodge, Jeep, Fiat and Chrysler also forecast first-half revenue of 74.3 billion euros, down from 85 billion euros a year ago. The preliminary figures replace Stellantis' financial guidance, which the company suspended on April 30, citing uncertainty caused by tariffs.
The update reaffirms the challenges ahead for automakers in the wake of U.S. President Donald Trump's tariffs, and for new Stellantis CEO Antonio Filosa. The company said that its second-quarter vehicle shipments declined sharply due largely to the impacts of U.S. tariffs.
North American Sales
Specifically, Stellantis said its overall second-quarter shipments fell to an estimated 1.4 million vehicles, down 6% year-over-year. In North America, Stellantis said Q2 shipments are expected to decline by roughly 109,000 units, down an annualized 25%.
On April 3 of this year, a 25% U.S. tariff took effect on all motor vehicles imported into America from foreign countries. Stellantis' financial results for the first half of the year will be released on July 29. STLA stock is down 21% so far in 2025.
Is STLA Stock a Buy?
The stock of Stellantis has a consensus Hold rating among 18 Wall Street analysts. That rating is based on four Buy, 12 Hold, and two Sell recommendations issued in the last three months. The average STLA price target of $10.99 implies 16.36% upside from current levels.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
21 minutes ago
- Yahoo
US Equity Indexes Mixed as General Motors Reports $1.1 Billion Tariff Hit, Economic Data Show Weakness
US equity indexes traded mixed after midday as quarterly earnings released on Tuesday failed to insp Sign in to access your portfolio
Yahoo
21 minutes ago
- Yahoo
US considering removing tax on capital gains on home sales, Trump says
WASHINGTON (Reuters) -U.S. President Donald Trump said on Tuesday his administration is considering removing taxes on capital gains on home sales. "If the Fed would lower the rates, we wouldn't even have to do that," Trump told reporters in the Oval Office. "But we are thinking about no tax on capital gains on houses." Profits from the sale of homes, like other assets, are now subject to capital gains taxes, although there are large deductions for sales of primary residences. Republican Representative Marjorie Taylor Greene interpreted Trump's comments as a show of support for a bill she's proposed called the No Tax on Home Sales Act, which would eliminate the federal capital gains tax on the sale of primary residences. "Thank you, President Trump, for supporting my No Tax on Home Sales Act!" Greene said in a post on X. "You worked for it. You should keep it. Let's get this bill passed!" Greene said. Congress recently passed legislation that made permanent broad tax cuts passed in 2017 during Trump's first presidency. The bill also fulfilled Trump's campaign promises to include new tax breaks for tips, overtime pay, seniors and auto loans. Trump's political opponents say the measures will mainly help the rich and add trillions of dollars to U.S. national debt, only partially offset by deep cuts to healthcare and other benefits for the poor. Sign in to access your portfolio
Yahoo
21 minutes ago
- Yahoo
New cane sugar Coca-Cola to debut in US this autumn
Coca-Cola has confirmed plans to replace high-fructose corn syrup with cane sugar in many of its US soft drink products starting this autumn. The move is expected to coincide with higher prices at retail level, as the company aims to protect profit margins in the face of mounting production costs and changing consumer preferences. New formula rollout to begin this autumn The company announced that cane sugar Coca-Cola will begin appearing on U.S. shelves from autumn 2025. The shift marks a significant change in formulation for the brand's core soft drinks, which have relied on corn syrup in the US market for decades. This transition will not apply to Diet Coke or Coke Zero Sugar, which remain unchanged. Coca-Cola has used cane sugar in some international markets and limited-edition domestic releases, such as the 'Mexican Coke' variant, which has maintained a niche following. Higher shelf prices expected as costs rise Coca-Cola stated that the new formulation could result in a noticeable price increase at supermarkets and convenience stores. Executives cited elevated global sugar prices and supply chain volatility as key drivers. Retail analysts say the price hikes may impact household purchasing habits, particularly amid broader inflationary pressure in the food and beverage sector. The company's latest earnings report showed resilient demand, but acknowledged that maintaining profitability would require 'disciplined pricing' moving forward. Consumer demand and political backdrop influence decision The decision comes amid a broader cultural and political shift in the U.S. food landscape. Consumer interest in natural ingredients and clean labels has increased over the past decade, with cane sugar often perceived as a less processed alternative to corn syrup. The change also follows recent political developments, including former President Donald Trump's public endorsement of cane sugar Coca-Cola, which he claims is 'how Coke used to taste.' While the company did not comment directly on Trump's remarks, industry experts suggest such high-profile attention may have accelerated strategic planning. As Coca-Cola prepares for the launch, major US retailers are expected to adjust shelf space and promotional strategies ahead of the reformulated drinks hitting stores later this year. "New cane sugar Coca-Cola to debut in US this autumn" was originally created and published by Retail Insight Network, a GlobalData owned brand.
