Tesla rival Stellantis N.V. STLA announced its first-quarter shipment and revenue report on Tuesday, which showed a 12% decrease in net revenues and a 10% reduction in consolidated shipments, largely due to volume, mix, and foreign exchange challenges.
What Happened:
- The net revenue for the first quarter was 41.7 billion euros ($44.6 billion), falling below a Reuters poll expectation of 42.6 billion euros ($45.6 billion).
- Total new vehicle inventory stood at 1,393 thousand units.
- Consolidated shipments fell by 10% to 1,335 thousand units in Q1.
- Global BEV and LEV sales increased by 8% and 13%, respectively, versus Q1 2023.
- The company plans to launch 25 new models in 2024, of which four were introduced in the first quarter.
What Affected The Revenue?
Stellantis, one of the Detroit Big Three, attributed the decline in net revenue to production adjustments and inventory management strategies in anticipation of a new product wave in the second half of 2024.
Key Developments:
Stellantis confirmed a €3 billion ($3.21 billion) share buyback is on track for completion this year.
The company’s ordinary dividend of €1.55 ($1.76) per share, a 16% increase from the previous year, was approved at the Annual General Meeting and will be paid to shareholders on May 3, 2024.
Despite these challenges, Stellantis is preparing for a new product wave in the first half of 2024.
“During the first quarter of 2024, we have introduced four new models out of our full-year launch plan of 25 models, including 18 BEV nameplates, which we believe sets the stage for materially improved growth and profitability in the second half of the year,” Natalie Knight, CFO of Stellantis, said in a statement.
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Why It Matters:
The dip in Stellantis’ first quarter revenues can be traced back to the six-week-long UAW strike that impacted the company’s earnings in 2023. Despite the strike, Stellantis reported strong earnings for the full year but experienced a profit drop during the second half of 2023 due to halted production. The company’s U.S. performance was also less than impressive, with Stellantis being the only major automaker to report a decline in U.S. sales in 2023.
Tesla Inc also reported first-quarter financial results last week. Tesla reported first-quarter revenue of $21.0 billion, which was down 9% year-over-year. The revenue total missed a Street consensus estimate of $22.15 billion, according to data from Benzinga Pro.
Price Action: On Monday, the company’s share price closed 0.73% higher at $24.92, but was trading 2.29% lower at $24.35 in Tuesday’s pre-market, according to Benzinga Pro.
This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Image via Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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