Stellantis Stock Headed for 1-Year Low After Outlook Cut

By Dean Seal

Shares of Stellantis fell after the Chrysler owner warned of shaky demand in the car market and cut full-year earnings guidance.

The stock was down 13% at $13.93 in premarket trading, putting it on track to open at a 52-week low. Shares had already fallen 31% year-to-date when the market closed last week.

The Jeep and Dodge maker said Monday that it would accelerate plans to reduce U.S. inventories amid weaker demand across many of its markets.

"Deterioration in the global industry backdrop reflects a lower 2024 market forecast than at the beginning of the period, while competitive dynamics have intensified due to both rising industry supply, as well as increased Chinese competition," Stellantis said in a statement.

The warning comes after Stellantis rival Volkswagen cut its sales and profitability forecasts on Friday. Mercedes-Benz and BMW also pulled back their sales and earnings projections in recent weeks, citing slowing sales in the Chinese luxury market.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

September 30, 2024 08:24 ET (12:24 GMT)

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