Stellantis N.V. (STLA) Shifts Focus to EVs, Halts Hydrogen Plans

We recently compiled a list of 11 Best Undervalued Stocks to Invest in Now. Stellantis N.V. stands seventh on our list and has recently ended its hydrogen plans, shifting focus to EVs.

Stellantis N.V. (NYSE:STLA), one of the world’s largest automakers, is undergoing a strategic transformation by shifting its focus from hydrogen fuel cell technology to electric and hybrid vehicles. In July 2025, the company announced it would discontinue its hydrogen program due to high costs, limited infrastructure, and weak market demand. This decision includes halting the production of hydrogen-powered vans in France and Poland, with R&D resources redirected toward electrification projects. Notably, no job losses will result from this transition.

Instead, Stellantis N.V. (NYSE:STLA) is doubling down on battery innovation, particularly in solid-state batteries through its partnership with Factorial Energy. The company is also expanding connected services and rolling out its new STLA AutoDrive 1.0, an in-house-developed SAE Level 3 autonomous driving system, highlighting its broader commitment to next-generation mobility.

This shift comes amid financial challenges, including a major loss in the first half of 2025, largely due to U.S. tariffs and production disruptions. However, for investors seeking cheap stocks to buy with long-term potential, Stellantis’ aggressive EV pivot and restructuring under new CEO Antonio Filosa could present a compelling opportunity. The company is prioritizing growth in EVs and hybrids, aligning with broader industry trends that increasingly favor electric technologies over hydrogen.

While we acknowledge the potential of STLA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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