We might have laughed at the weird Stellantis name chosen as the title of the company created by the merger of Fiat Chrysler Automobiles and the PSA Group, but the only people laughing now are shareholders. They’ve watched stock prices rocket more than 60 per cent since this time last year, while Tesla’s value has climbed only 27 percent in the same period (even if Stellantis’ 59 billion euro ($67 billion) market value is still just 6 percent of the U.S. automaker’s).
However, industry analysts are warning that Stellantis has plenty of tough work ahead if it is to catch up with Tesla, which has a huge head start in the field of electric car technology. Tesla has developed such a huge fanbase that it could become the best-selling luxury car brand in the U.S. in 2022, having nearly matched current champ BMW in the 2021 league table. Meanwhile, Chrysler’s first EV, the Airflow, doesn’t go on sale until 2025.
Related: Stellantis CEO Warns About Europe’s Move To Ban ICE-Powered Cars
Chrysler’s first EV, the Airflow, doesn’t go on sale until 2025
Despite his misgivings about Europe’s move to ban ICE-powered cars, Stellantis CEO, Carlos Tavares, has already revealed an extensive plan to electrify the company’s future product, and is set to unveil his business plan on March 1. But speaking to Reuters, analysts say Tavares has some serious work ahead of him and that will necessitate making some tough choices.
Those analysts told the news agency that Stellantis’ various brands are often so similar that they risk competing against each other, whereas Tesla is going from strength to strength with one single brand, only a handful of models and a focused strategy. It seems logical that some of the group’s 14 brands will be axed in time, though Tavares announced last year that each brand would be given a decade to prove itself before any drastic action was taken.
Industry experts also highlight Stellantis’ poor performance in China as a pressing concern, suggesting that Tavares could lean heavily on the strength of the Jeep and Maserati brands to offset a lack of awareness of the Group’s other marques.