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Stellantis' (STLA) Bold Future Plan Set to Churn Out Big Gains
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Stellantis (STLA - Free Report) , at one of its strategy meetings, launched the Dare Forward 2030 plan that will aid its transition to a carbon net-zero entity by 2038, with a 50% reduction by 2030. Apart from this, the auto giant aims to double net revenues to $335 billion annually by 2030 and maintain double-digit profit margins as it looks to ramp up efforts to bring electrified versions of its cars.
To steer leadership in de-carbonization, the company aims for 100% of sales in Europe and 50% of sales in the United States to bring battery electric vehicles (BEVs) by the end of this decade. It plans to have more than 75 BEVs and reach global annual BEV sales of 5 million vehicles by 2030.
It also unveiled its first-ever fully electric Jeep SUV, expected to be launched in early 2023, two years earlier than initially predicted. The new Ram 1500 BEV pickup truck, arriving in 2024, was also previewed.
The automaker has been consistently channelizing resources to move away from internal combustion engine vehicles. Last year, it pledged about $35.5 billion to electric vehicles and new software over the next four years. Further, it is working in communion with many of the premium brands. The bold decision also brings with it the challenge of completely restructuring its operations while maintaining steady profit margins.
Additionally, the automaker is targeting a 25-30% dividend payout ratio through 2025 and the repurchase of up to 5% of outstanding common shares.
Stellantis also looks to develop software that can sell products and subscriptions to passengers and drivers and, in turn, generate revenues. In December 2021, the automaker chalked out an ambitious plan to generate $22.5 billion annually from software.
The firm also has its eyes on monetizing connected vehicles via partnerships with major players and its upcoming plan to launch a ‘Delivery-as-a-Service’ program with Waymo.
Under the Dare Forward strategy, Stellantis aims to increase its planned battery capacity by 140 gigawatt-hours to nearly 400 GWh and expand its hydrogen fuel cell technology to large vans in 2024.
The automaker has also opened the Stellantis Corporate Venture Fund with $334 million of initial funding to expedite the adoption of enhanced techniques.
The Dare Forward 2030 promises to make the company a championed player in the domain of net-zero emission vehicles by driving innovation and employee engagement.
Shares of STLA have lost 1.1% over the past year compared with its industry’s 0.5% decline.
Tesla has an expected earnings growth rate of 40.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 22.3% upward in the past 60 days.
Tesla’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 33.3%, on average. The stock has also rallied 25.9% over a year.
Harley-Davidson has an expected earnings growth rate of 1.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 21.7% upward in the past 60 days.
Harley-Davison’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. HOG pulled off a trailing four-quarter earnings surprise of 77.59%, on average. The stock has rallied 11.1% over a year.
LCI Industries has an expected earnings growth rate of 25.6% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 13.8% upward in the past 60 days.
LCI Industries’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. LCII pulled off a trailing four-quarter earnings surprise of 12.86%, on average. The stock has declined 11.1% over a year.
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Stellantis' (STLA) Bold Future Plan Set to Churn Out Big Gains
Stellantis (STLA - Free Report) , at one of its strategy meetings, launched the Dare Forward 2030 plan that will aid its transition to a carbon net-zero entity by 2038, with a 50% reduction by 2030. Apart from this, the auto giant aims to double net revenues to $335 billion annually by 2030 and maintain double-digit profit margins as it looks to ramp up efforts to bring electrified versions of its cars.
To steer leadership in de-carbonization, the company aims for 100% of sales in Europe and 50% of sales in the United States to bring battery electric vehicles (BEVs) by the end of this decade. It plans to have more than 75 BEVs and reach global annual BEV sales of 5 million vehicles by 2030.
It also unveiled its first-ever fully electric Jeep SUV, expected to be launched in early 2023, two years earlier than initially predicted. The new Ram 1500 BEV pickup truck, arriving in 2024, was also previewed.
The automaker has been consistently channelizing resources to move away from internal combustion engine vehicles. Last year, it pledged about $35.5 billion to electric vehicles and new software over the next four years. Further, it is working in communion with many of the premium brands. The bold decision also brings with it the challenge of completely restructuring its operations while maintaining steady profit margins.
Additionally, the automaker is targeting a 25-30% dividend payout ratio through 2025 and the repurchase of up to 5% of outstanding common shares.
Stellantis also looks to develop software that can sell products and subscriptions to passengers and drivers and, in turn, generate revenues. In December 2021, the automaker chalked out an ambitious plan to generate $22.5 billion annually from software.
The firm also has its eyes on monetizing connected vehicles via partnerships with major players and its upcoming plan to launch a ‘Delivery-as-a-Service’ program with Waymo.
Under the Dare Forward strategy, Stellantis aims to increase its planned battery capacity by 140 gigawatt-hours to nearly 400 GWh and expand its hydrogen fuel cell technology to large vans in 2024.
The automaker has also opened the Stellantis Corporate Venture Fund with $334 million of initial funding to expedite the adoption of enhanced techniques.
The Dare Forward 2030 promises to make the company a championed player in the domain of net-zero emission vehicles by driving innovation and employee engagement.
Shares of STLA have lost 1.1% over the past year compared with its industry’s 0.5% decline.
Zacks Rank & Other Key Picks
Currently, STLA has a Zacks Rank #1 (Strong Buy).
Other top-ranked players in the auto space include Tesla (TSLA - Free Report) , Harley-Davidson (HOG - Free Report) and LCI Industries (LCII - Free Report) , each sporting a Zacks Rank #1 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tesla has an expected earnings growth rate of 40.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 22.3% upward in the past 60 days.
Tesla’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 33.3%, on average. The stock has also rallied 25.9% over a year.
Harley-Davidson has an expected earnings growth rate of 1.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 21.7% upward in the past 60 days.
Harley-Davison’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. HOG pulled off a trailing four-quarter earnings surprise of 77.59%, on average. The stock has rallied 11.1% over a year.
LCI Industries has an expected earnings growth rate of 25.6% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 13.8% upward in the past 60 days.
LCI Industries’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. LCII pulled off a trailing four-quarter earnings surprise of 12.86%, on average. The stock has declined 11.1% over a year.