Stellantis Shares Drop Despite 13% Q3 Sales Rise Due to Anticipated H2 Charges

Stellantis, the automaker behind brands such as Jeep, Fiat, and Chrysler, reported a 13% increase in third-quarter sales driven by strong performances in North America and Europe, with global sales up 4% year-over-year. Despite this growth, the company warned of one-off charges expected in the second half of the year due to strategic and product plan changes, regulatory and geopolitical challenges, and a review of its warranty cost estimates. These anticipated charges overshadowed the positive revenue figures and led to a sharp decline in Stellantis' stock price, which has fallen over 27% year-to-date. The company reaffirmed its financial guidance for the remainder of 2025, projecting continued improvements in net revenues, free cash flow, and operating income, assuming no major supply chain disruptions. The warning coincided with ongoing global issues such as the semiconductor supply crunch and U.S.-China trade tensions, which Stellantis cites as factors impacting its outlook. Overall, while the firm's turnaround plan under CEO Antonio Filosa shows progress, uncertainties remain significant enough to prompt cautious investor sentiment.