Why Stellantis shares are rallying this week

Investing.com -- Stellantis shares jumped more than 9% on Thursday after new chief executive Antonio Filosa struck a confident tone during a public fireside chat, where he set out priorities and reiterated a focus on revenue growth, industrial execution, and gradual profit improvement.

Filosa’s approach marks a stark reversal of past management’s decisions. He stressed a focus on growing revenue as a key priority, in contrast to the previous management, which prioritized margins over volumes.

A key lever will be the reintroduction of several U.S. model lines, including the Jeep Cherokee, Jeep Renegade, Dodge Charger with internal combustion engines, and the return of the Hemi engine, which already has 40,000 orders.

He also flagged plans for an all-new RAM mid-sized pickup truck set for 2027.

On dealer inventories, Filosa described the situation as much improved, with 2024 models and most of the 2025 line-up already sold. He promised more rigorous inventory management to maintain the quality mix.

He also characterized discussions with regulators as constructive, noting that a final scenario was getting clearer on Mexico/Canada-U.S. tariffs, while praising the European Commission’s more constructive attitude toward CO2 rules.

On the financial front, Filosa said free cash flow remains the primary objective and that Stellantis “wants to turn the corner very soon.”

“He said he wouldn’t be able to anticipate guidance beyond the statements at H1 stage, but reiterated the commitment to quarterly disclosure from Q1 2026,” Barclays analysts highlighted.

The analysts described the comments as constructive but not substantially new, noting that U.S. market share, inventory, and incentive data remain weak, and European pricing is still under pressure.

“We view the magnitude of the +9.2% share price reaction yesterday as surprisingly large,” the team said, pointing out that Stellantis outperformed peers Ford and GM, which rose about 3% and 2.4% respectively.

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