TECH - Stellantis And Volkswagen Are Off To A Slow Start | Benzinga
After the EV king, Tesla Inc (NASDAQ: TSLA) reported its biggest revenue drop since 2012, along with a sinking profit, Stellantis N.V. (NYSE: STLA) and Volkswagen AG (OTC: VWAGY) followed by reporting disappointing first quarter financials that reflected lower sales and higher costs. Plummeting sales and profit made the once-all-mighty Tesla promise more affordable EVs are coming early next year, if not later this year. Despite a slow start of the year, both Stellantis and Volkswagen have maintained their full year targets.
Despite disappointing Q1 results, Stellantis is betting on its new products portfolio.
For the January-March quarter, Stellantis reported revenue contracted 12% to 41.7 billion euros, which adds up to about $44.6 billion. Stellantis’ results were weighed down by lower volumes, along with an unfavourable product mix and foreign exchange dynamics, with the European region performing worse than expected, in terms of volume, price and product mix. Moreover, shipments in North America, Stellantis’ largest market also contracted 20%.
EV unit sales rose 8%, but consolidated shipments overall dropped 10% to 1.335 million units.
CFO Natalie Knight attributed the drop in shipments and revenues to the transition to the group's new product portfolio which will be based on new platforms. To prepare, ...