Stellantis NV (NYSE:STLA) posted its third-quarter earnings recently, beating market expectations on revenue as CEO Antonio Filosa outlined major U.S. investment amid autonomous driving collaboration with Nvidia Corp (NASDAQ:NVDA).
Check out the current price of STLA here.
Stellantis Posts $43 Billion Revenue, Antonio Filosa Says U.S. Production Capacity To Increase
At the company's third-quarter earnings call on Thursday, Stellantis posted a revenue of €37.2 billion (approximately $43 billion), beating market expectations of €35 billion ($40 billion). The company also announced a 13% YoY increase in its shipments to 1.2 million units and a 13% increase in revenue compared to last year.
Speaking to investors, Filosa highlighted that the $13 billion investment in the U.S. would help the company bolster its presence in Stellantis' "most important and largest market."
"This is the largest single investment in our history," Filosa said, adding that the investment over the next four years will help introduce 5 new models in the market and "increase the level of U.S. production by 50%." Filosa also added that the company would also "reduce exposure against tariffs" implemented by President Donald Trump.
FX Headwind Led To Stock Decline
The company also highlighted foreign exchange concerns. "FX [Foreign Exchange] remained a material headwind in the third quarter, with €1.7 billion (over $1.96 billion) negative impact at the group level," Joao Larangeira, Stellantis' Chief Financial Officer, said during the call.
The FX headwind led to a decline in stock value for the automaker, with STLA dropping over 9% despite the revenue beat following the earnings call. It currently trades for $10.40, surging almost 2.5% in pre-market trading, according to Benzinga Pro data.
Stellantis' Pony AI Partnership, Wagoneer Production Woes
The news comes as Stellantis also announced a partnership with Pony AI Inc. (NASDAQ:PONY) to develop level 4 autonomous driving vans, with initial real-world testing of the autonomous fleet to take place in Luxembourg this year, with a planned expansion across Europe next year.
Meanwhile, a fire at a Novelis facility in Oswego, New York, left about 40% of the factory unable to process aluminum. Novelis is a key aluminum supplier for companies like Stellantis and Ford Motor Co. (NYSE:F). The fire resulted in Stellantis halting production of the Jeep Wagoneer SUV in Warren, Michigan.
Stellantis scores poorly on the Momentum and Growth metrics, but offers a favorable price trend in the Short and Medium term. For more such insights, sign up for Benzinga Edge Stock Rankings today!
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