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Stellantis (STLA) Ties Up With California to Reduce Emissions
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Stellantis (STLA - Free Report) and the California Air Resource Board (“CARB”) entered into an agreement to reduce greenhouse gas emissions. The deal is aligned with the company’s Dare Forward 2030 strategic plan.
As part of the deal, Stellantis agreed to consolidate its ongoing electrification initiative through educational endeavors, aimed at informing U.S. consumers and dealers about the advantages of electric vehicles (EVs). This commitment involves partnering with Veloz, a leading promoter of EV awareness programs, offering discounted EVs to organizations in underprivileged communities and providing an additional $10 million to develop EV charging infrastructure.
Per Carlos Tavares, CEO of the company, the contract will avoid 10-12 million metric tons of greenhouse gas emissions over its lifetime. It will also benefit STLA’s U.S. consumers through its advanced technologies, which include five plug-in hybrids and two pure EVs.
Per the terms mentioned in the agreement, Stellantis will adhere to California's zero-emissions and light-duty vehicle sales regulations until 2030, irrespective of the state's ability to enforce these rules.
Moreover, under the Clean Air Act, the automaker will not resist California’s authority for its greenhouse gas emissions and zero-emission vehicle standards.
In 2019, Ford, Volkswagen, Honda and BMW signed a deal with California to reduce vehicle emissions. Volvo Cars soon joined the deal afterward.
In December 2023, Stellantis challenged California’s prior refusal to let the automaker join the same deal, citing the state’s emission regulations that had forced the company to cut some work in Michigan and Ohio plants.
The recent deal will allow STLA to comply with the state's rules based on national sales.
The automaker has been reducing shipments of gas-powered vehicles to dealers and sales of plug-in EVs in states embracing California’s emission regulations.
In the United States, Stellantis currently sells five plug-in hybrids, which include the Jeep Wrangler 4xe, its top-selling vehicle, Grand Cherokee 4xe, Chrysler Pacifica Hybrid, Dodge Hornet and Alfa Romeo Tonale. It also sells two pure EVs in the United States, namely the FIAT 500e and Ram ProMaster EV.
STLA plans to introduce eight new battery electric vehicle (BEV) models in the United States as part of its planned 48 BEV nameplates offering globally by the end of 2024.
As part of the Dare Forward 2030 plan, Stellantis aims to achieve a 100% passenger car BEV sales mix in Europe and a 50% passenger car and light-duty truck BEV sales mix in the United States by the end of the decade. The company is securing approximately 400 GWh of battery capacity to achieve these targets.
The latest deal with CARB reflects Stellantis’ progress toward becoming a carbon net zero corporation by 2038.
The Zacks Consensus Estimate for MOD’s 2024 sales and earnings per share (EPS) suggests year-over-year growth of 4% and 67.2%, respectively. The EPS estimates for 2024 have improved 22 cents in the past 60 days. The EPS estimates for 2025 have improved 12 cents in the past 30 days.
The Zacks Consensus Estimate for TM’s 2024 sales and earnings suggests year-over-year growth of 10% and 73.6%, respectively. The EPS estimates for 2024 and 2025 have improved $1.30 and $1.01, respectively, in the past 30 days.
The Zacks Consensus Estimate for ALSN’s 2024 sales and earnings suggests year-over-year growth of 2.1% and 3.2%, respectively. The EPS estimates for 2024 and 2025 have improved 13 cents and 29 cents, respectively, in the past 30 days.
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Stellantis (STLA) Ties Up With California to Reduce Emissions
Stellantis (STLA - Free Report) and the California Air Resource Board (“CARB”) entered into an agreement to reduce greenhouse gas emissions. The deal is aligned with the company’s Dare Forward 2030 strategic plan.
As part of the deal, Stellantis agreed to consolidate its ongoing electrification initiative through educational endeavors, aimed at informing U.S. consumers and dealers about the advantages of electric vehicles (EVs). This commitment involves partnering with Veloz, a leading promoter of EV awareness programs, offering discounted EVs to organizations in underprivileged communities and providing an additional $10 million to develop EV charging infrastructure.
Per Carlos Tavares, CEO of the company, the contract will avoid 10-12 million metric tons of greenhouse gas emissions over its lifetime. It will also benefit STLA’s U.S. consumers through its advanced technologies, which include five plug-in hybrids and two pure EVs.
Per the terms mentioned in the agreement, Stellantis will adhere to California's zero-emissions and light-duty vehicle sales regulations until 2030, irrespective of the state's ability to enforce these rules.
Moreover, under the Clean Air Act, the automaker will not resist California’s authority for its greenhouse gas emissions and zero-emission vehicle standards.
In 2019, Ford, Volkswagen, Honda and BMW signed a deal with California to reduce vehicle emissions. Volvo Cars soon joined the deal afterward.
In December 2023, Stellantis challenged California’s prior refusal to let the automaker join the same deal, citing the state’s emission regulations that had forced the company to cut some work in Michigan and Ohio plants.
The recent deal will allow STLA to comply with the state's rules based on national sales.
The automaker has been reducing shipments of gas-powered vehicles to dealers and sales of plug-in EVs in states embracing California’s emission regulations.
In the United States, Stellantis currently sells five plug-in hybrids, which include the Jeep Wrangler 4xe, its top-selling vehicle, Grand Cherokee 4xe, Chrysler Pacifica Hybrid, Dodge Hornet and Alfa Romeo Tonale. It also sells two pure EVs in the United States, namely the FIAT 500e and Ram ProMaster EV.
STLA plans to introduce eight new battery electric vehicle (BEV) models in the United States as part of its planned 48 BEV nameplates offering globally by the end of 2024.
As part of the Dare Forward 2030 plan, Stellantis aims to achieve a 100% passenger car BEV sales mix in Europe and a 50% passenger car and light-duty truck BEV sales mix in the United States by the end of the decade. The company is securing approximately 400 GWh of battery capacity to achieve these targets.
The latest deal with CARB reflects Stellantis’ progress toward becoming a carbon net zero corporation by 2038.
Zacks Rank & Key Picks
STLA currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Modine Manufacturing Company (MOD - Free Report) , Toyota Motor Corporation (TM - Free Report) and Allison Transmission Holdings, Inc. (ALSN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MOD’s 2024 sales and earnings per share (EPS) suggests year-over-year growth of 4% and 67.2%, respectively. The EPS estimates for 2024 have improved 22 cents in the past 60 days. The EPS estimates for 2025 have improved 12 cents in the past 30 days.
The Zacks Consensus Estimate for TM’s 2024 sales and earnings suggests year-over-year growth of 10% and 73.6%, respectively. The EPS estimates for 2024 and 2025 have improved $1.30 and $1.01, respectively, in the past 30 days.
The Zacks Consensus Estimate for ALSN’s 2024 sales and earnings suggests year-over-year growth of 2.1% and 3.2%, respectively. The EPS estimates for 2024 and 2025 have improved 13 cents and 29 cents, respectively, in the past 30 days.