Business
HSBC Cuts Stellantis to Reduce as U.S. Inventory Crisis Returns
HSBC Cuts Stellantis to Reduce as U.S. Inventory Crisis Returns
About this update from Stellantis N.v.
Stellantis (STLAM), one of the world's largest automakers, fell 2.68% intraday after HSBC cut its rating to Reduce from Hold and slashed its price target to 4 from 5.50, implying roughly 21% downside from the prior session. The bank flagged U.S. dealer inventory at 93 selling days in June 2026, up approximately 120,000 units compared to a year earlier, and warned the company may have to repeat the deep price cuts and production curtailments it undertook in 2024 to clear a similar overhang. Stellantis has also issued 19 vehicle recalls covering 2.5 million units in 2026, which HSBC cited as a central quality concern. The stock is trading near its 52-week low of 4.833, well below the 52-week high of 10.494.Italy production data offered a partial offset. FIM Cisl trade union figures showed Stellantis produced 252,223 vehicles in Italy in the first half of 2026, up 13.7% year-on-year, with passenger car output rising 27.7% to 158,193 units, supported by new Jeep Compass and Fiat 500 hybrid production lines. The Cassino plant was an exception, falling 36.2%. Full-year Italian output is projected at around 500,000 vehicles, still well below the 750,000 produced in 2023 and short of the Italian government's 1 million unit target.