Stellantis' plug-in hybrids may payoff during EV slowdown

02/24/2024 01:12
Stellantis' plug-in hybrids may payoff during EV slowdown

As electric vehicle makers Rivian (RIVN) and Lucid (LCID) see their stocks decline on lackluster earnings and production outlooks amid slowing EV demand, which mainline automaker is best positioned to capture the attention of prospective EV buyers? Tom Narayan, RBC Capital Markets Lead Equity Analyst — Global Autos, joins Yahoo Finance Live to highlight why he believes Stellantis (STLA) — which owns Jeep, Dodge, and Chrysler — stands to gain the most from plug-in hybrid models while price pressures barrage consumer interest in EVs. "Those names that have more dedicated architectures that can only make full electrics now are facing some problems, right, because all they can do is make bets. So if the demand for those slow, it's not like they can switch and pivot and make plug-in hybrids," Narayan explains. "That's probably one of the main reasons why we like a name like Stellantis. it looked like a mistake to a lot of people a few years ago, when they chose this approach. But, now they're looking like the smartest kids in the classroom." Narayan also comments on Stellantis' pricing strategy geared toward American auto buyers. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Luke Carberry Mogan.

As electric vehicle makers Rivian (RIVN) and Lucid (LCID) see their stocks decline on lackluster earnings and production outlooks amid slowing EV demand, which mainline automaker is best positioned to capture the attention of prospective EV buyers?

Tom Narayan, RBC Capital Markets Lead Equity Analyst — Global Autos, joins Yahoo Finance Live to highlight why he believes Stellantis (STLA) — which owns Jeep, Dodge, and Chrysler — stands to gain the most from plug-in hybrid models while price pressures barrage consumer interest in EVs.

"Those names that have more dedicated architectures that can only make full electrics now are facing some problems, right, because all they can do is make bets. So if the demand for those slow, it's not like they can switch and pivot and make plug-in hybrids," Narayan explains. "That's probably one of the main reasons why we like a name like Stellantis. it looked like a mistake to a lot of people a few years ago, when they chose this approach. But, now they're looking like the smartest kids in the classroom."

Narayan also comments on Stellantis' pricing strategy geared toward American auto buyers.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Luke Carberry Mogan.

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