Stellantis and CATL Sign Agreement for Local Supply of LFP Batteries in Europe
November 22, 2023
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Stellantis ($NYSE:STLA) NV, the European automotive giant formed from the merger of Fiat Chrysler Automobiles NV and Groupe PSA, has recently entered into an agreement with Contemporary Amperex Technology Co. Limited (CATL), one of the world’s leading suppliers of batteries for electric vehicles, to ensure the local supply of Lithium Iron Phosphate (LFP) batteries for the European market. The Memorandum of Understanding (MoU) that Stellantis and CATL have signed is a major step towards the electrification of Stellantis’s European vehicle portfolio. This agreement will provide Stellantis with access to CATL’s latest battery technology and will ensure that Stellantis can meet the growing demand for electric vehicles in Europe.
As part of the agreement, CATL will invest in facilities to produce electric vehicle batteries in Europe for Stellantis. The combination of Stellantis’s vast production capacity and CATL’s cutting-edge battery technology will position both companies to become leaders in the electric vehicle market.
Market Price
On Tuesday, STELLANTIS NV, the newly formed automotive company that resulted from the merger of Fiat Chrysler Automobiles (FCA) and PSA Group, experienced stock prices slipping. The stock opened at $20.4 and closed at $20.2, 2.1% lower than the prior closing price of 20.6. The same day, STELLANTIS NV announced that it had signed an agreement with CATL, a Chinese battery supplier, to secure the local supply of lithium-ion phosphate (LFP) batteries in Europe. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Stellantis Nv. More…
| Total Revenues | Net Income | Net Margin |
| 189.96k | 19.76k | 11.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Stellantis Nv. More…
| Operations | Investing | Financing |
| 23.51k | -11.78k | -7.58k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Stellantis Nv. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 198.57k | 121.51k | 24.62 |
Key Ratios Snapshot
Some of the financial key ratios for Stellantis Nv are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 28.6% | 196.2% | 12.8% |
| FCF Margin | ROE | ROA |
| 7.6% | 20.4% | 7.6% |
Analysis
After conducting an analysis of STELLANTIS NV‘s wellbeing, GoodWhale has identified that according to the Star Chart, STELLANTIS NV is strong in asset, growth, and medium in dividend and profitability. We calculate a high health score of 8/10 for the company, taking into account its cashflows and debt, indicating that the company is capable of paying off debt and funding future operations. We have classified STELLANTIS NV as a ‘gorilla’, a type of company that has achieved both stable and high revenue and/or earning growth due to its strong competitive advantage. Investors who are interested in companies with such characteristics may be drawn to STELLANTIS NV. More…
Peers
The competition between Stellantis NV and its competitors is fierce. Ford Motor Co, General Motors Co, and Toyota Motor Corp are all fighting for market share in the automotive industry. Stellantis NV is a new player in the game, but it is quickly making a name for itself. The company has already established itself as a force to be reckoned with in the European market, and it is now looking to make inroads in the United States and China.
– Ford Motor Co ($NYSE:F)
Ford Motor Company is an American multinational automaker that has its main headquarters in Dearborn, Michigan, a suburb of Detroit. The company sells automobiles and commercial vehicles under the Ford brand and most luxury cars under the Lincoln brand. Ford also owns Brazilian SUV manufacturer Troller, an 8% stake in Aston Martin of the United Kingdom, and a 32% stake in Jiangling Motors of China. It also has joint-ventures in China, Taiwan, Thailand, Turkey, and Russia. The company is listed on the New York Stock Exchange and is controlled by the Ford family; they have minority ownership but the majority of the voting power.
As of 2022, Ford Motor Company has a market capitalization of $47.56 billion and a return on equity of 23.7%. The company has been in operation for over a century and continues to be a leading player in the global automotive industry. Ford’s products are sold in over 200 markets around the world and the company has a strong presence in both developed and emerging markets.
– General Motors Co ($NYSE:GM)
General Motors Co., commonly referred to as GM, is an American multinational corporation headquartered in Detroit that designs, manufactures, markets, and distributes vehicles and vehicle parts, and sells financial services.
As of 2020, GM had a market capitalization of $48.95 billion. This is down from $52.6 billion in 2019. GM’s return on equity was 10.52% in 2020. This is down from 11.92% in 2019.
GM’s decline in market capitalization and ROE can be attributed to a variety of factors, including the COVID-19 pandemic. The pandemic caused a decrease in demand for vehicles, which led to a decrease in GM’s sales and revenue. The decrease in sales and revenue caused GM’s stock price to decline, which in turn led to a decrease in market capitalization. The pandemic also caused GM to incur additional costs, which led to a decline in profits and ROE.
– Toyota Motor Corp ($TSE:7203)
Toyota Motor Corp is one of the largest automakers in the world with a market cap of 27.37T as of 2022. It has a Return on Equity of 11.32%. Toyota is known for its quality vehicles and its commitment to innovation. The company is headquartered in Japan and has operations all over the world. Toyota is a leader in the automotive industry and its products are in high demand. The company’s strong financial position and commitment to innovation make it a great investment.
Summary
Stellantis NV, formed through the merger of Fiat Chrysler Automobiles and PSA Group, is a global automotive giant that has recently secured a memorandum of understanding (MoU) with Chinese battery manufacturer CATL to secure the local supply of lithium-ion phosphate (LFP) batteries for the European market. This development is expected to benefit the company’s stock as it increases efficiency, reduces costs, and strengthens Stellantis’ foothold in the European market. Additionally, the company is expected to benefit from its strong product portfolio, solid financials, competitive positioning, and global presence. Analysts also believe that Stellantis NV is well placed to benefit from the growing electric vehicle market, which is expected to drive the company’s stock higher in the long run.
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