Stellantis Stock Jumps 7% on Strong Q3 U.S. Sales
The automaker's shares surged after it reported a 6% rise in its Q3 U.S. sales, driven by strong demand for its Jeep and Chrysler brands.
Stellantis (STLA) shares jumped 7% in premarket trading after the automaker reported a 6% rise in its third-quarter U.S. sales, a sign of strong consumer demand and effective supply chain management. The positive sales data provides a bullish outlook for the company's upcoming earnings report.
The company sold 324,825 vehicles in the U.S. in the third quarter, up from 306,439 in the same period last year. The increase was driven by strong sales of the company's Jeep and Chrysler brands. , led by the Wrangler and Gladiator models, while , boosted by the Pacifica and Voyager minivans.
"Our dealers are making the sales process more efficient and improving the customer experience, and our new-vehicle launchpad is in full swing," said U.S. Head of Sales Jeff Kommor. "The new Dodge Hornet, a CUV-sized gateway into the Brotherhood of Muscle, is on dealer lots now. We have much more to come, including the all-new, all-electric Ram ProMaster and the all-new 2023 Dodge Hornet R/T, arriving in the spring. We are not only building on our current product portfolio, but we are also building on our electric-vehicle lineup."
The strong sales report comes as the auto industry continues to grapple with supply chain disruptions and rising interest rates. However, Stellantis' performance suggests that consumer demand for new vehicles remains strong, particularly for popular models like the Jeep Wrangler and Ram 1500 pickup truck. , powered by the return of the HEMI® V8 in the Ram 1500.
Looking ahead, Stellantis is focused on its transition to electric vehicles. The company plans to launch a number of new EVs in the coming years, including an all-electric version of the Ram 1500. and a "mid-single-digits" adjusted operating income margin in 2025.
, with an average price target of $10.77. The stock is up about 15% year-to-date.