Stellantis Extends Fiat 500e Production Halt As Stock Struggles: Is A Rebound In Sight?

Stellantis NV‘s STLA struggles in the European electric vehicle (EV) market have weighed heavily on its share price.

The company is experiencing a sharp sell-off, with the stock down 27.08% over the past year and 40.17% year-to-date.

The extension of the Fiat 500e production halt due to weak demand exacerbated the downtrend. Investors are now searching for positive indicators.

Bearish Trend Dominates Stellantis Stock

Stellantis' technical indicators signal a bearish trend, with the stock price currently below its key moving averages.

Chart created using Benzinga Pro

• Eight-day SMA: $15.10 (Bearish)
• 20-day SMA: $15.25 (Bearish)
• 50-day SMA: $16.01 (Bearish)
• 200-day SMA: $21.67 (Bearish)

These simple moving averages confirm a strong bearish sentiment, indicating that selling pressure has intensified.

Chart created using Benzinga Pro

The Moving Average Convergence Divergence (MACD) stands at -0.43, reinforcing this bearish outlook.

However, the Relative Strength Index (RSI) is at 32.06, approaching oversold territory. A value below 30 typically indicates that a stock is oversold, suggesting a potential for a reversal. Investors looking for a bullish opportunity might consider this as a signal for a future bounce.

Read Also: Ford CEO Jim Farley Brings European Insights Home, Offers Free EV Chargers for US Buyers Till Jan 2

What's Next For Stellantis Stock?

With Stellantis set to prolong the production halt of the Fiat 500e until Nov. 1 and grappling with a recall of nearly 200,000 hybrid SUVs due to fire risks, challenges remain.

The company's revised fiscal 2024 guidance, now projecting lower margins and negative free cash flow, adds further pressure.

Yet, despite the grim short-term outlook, Stellantis' focus on EVs and hybrid technology, combined with Italy's incentives to promote cleaner vehicles, could support long-term recovery.

For now, the technicals paint a bearish picture, but Stellantis' RSI nearing oversold levels hints at a possible buying opportunity for risk-tolerant investors looking to capitalize on a future rebound.

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