Stellantis (STLA) Extends Losses on Cautious EU Outlook

We recently published 10 Stocks Struggling to Shine Ahead of Christmas. Stellantis NV (NYSE:STLA) is one of the worst performers on Monday.

Stellantis dropped for a fifth consecutive day on Monday, shedding 3.99 percent to close at $11.08 apiece as investor sentiment was dampened by the company’s cautious investment outlook in Europe.

This followed Stellantis NV (NYSE:STLA) CEO Antonio Filosa’s interview with the Financial Times, saying that the European Commission’s revised vehicle emission rules were lacking a clear growth strategy for the European car industry, making it harder to justify further investments in the region.

Investors took the comments in a negative light as it could spell the company’s expansion guidance.

Under the revised rules, automakers would be permitted to keep emitting 10 percent of their 2021 levels and continue selling internal combustion and hybrid models.

However, they will be required to compensate by using low-carbon steel and sustainable fuels.

“This package does not do the job. There are none of the urgent measures needed to return the European automotive sector to growth,” Filosa said.

Earlier,  Stellantis NV (NYSE:STLA) indicated that it would ramp up its spending in Europe if the Commission would ease its 2035 phase-out plan for petrol engines.

However, after the EU dropped the rules requiring carmakers to cut emissions to zero by 2030, conditions still do not appear to be in place.

“Without growth, it becomes very difficult to think about investing more,” Filosa said.

“Without additional investments, it is difficult to build the resilient supply chain that is vital for European jobs, European prosperity, and European security.”

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Disclosure: None. This article is originally published at Insider Monkey.