The introduction of tariffs imposed by the United States has severely impacted Stellantis, causing a market value collapse that has evaporated billions of euros on the Milan Stock Exchange. This negative trend was also replicated on Wall Street, where the stock suffered a substantial decline.
Investors’ reaction was swift, generating a massive wave of selling that heavily penalized the automotive group’s share prices. Financial markets seem to have interpreted this new tariff imposition as a serious obstacle to the company’s growth prospects, particularly regarding its North American operations.
Big market value loss for Stellantis shares
In the final minutes of trading, Stellantis shares on the Milan Stock Exchange were at €11.4, down 7% from the previous close, with market capitalization reduced to approximately €33 billion. Simultaneously, the stock was also losing ground on Wall Street, albeit with a more contained decline of 3.4%.
Analysts link this heavy correction to the implementation of 25% tariffs imposed by the United States on imports from Mexico and Canada. Stellantis is particularly vulnerable to this measure because, along with Volkswagen, it represents one of the main importers of light vehicles from Mexico, where the group operates a facility dedicated to Jeep production. This production chain configuration inevitably exposes the company to the consequences of new American trade policies.
The climate of distrust has prompted institutional investors to revise their valuations downward. Citigroup cut its target price to €12 from the previous €13, while JPMorgan reduced it to €16 from the previous €17, while maintaining an “Overweight” rating. These revisions, although not drastic in absolute terms, represent a worrying signal for the stock’s future and reflect a deterioration in expectations for company performance.
The wave of selling has brought the stock to historic lows, with an annual performance marking a dramatic -52%. This figure highlights how Stellantis’ difficulties are not limited to the impact of recent tariffs but are part of a context of broader challenges that the group is facing globally. Trading volumes significantly above average indicate a real investor exodus, creating a “fire sale” scenario that continues to fuel the downward spiral.
The situation appears particularly critical considering that continuous downward revisions of estimates by major investment banks are creating constant pressure on the stock. Despite some analysts maintaining positive recommendations for the long term, market sentiment remains decidedly negative in the short term, with the stock struggling to find technical support capable of stopping the decline.
The coming weeks will be crucial to understanding whether Stellantis will be able to develop effective strategies to mitigate the impact of tariffs and regain investor confidence, or whether pressure on financial markets will continue to further erode the automotive group’s value.