Shares in Stellantis, the world’s fourth-largest carmaker, dropped over 7% on Monday following the unexpected resignation of CEO Carlos Tavares.
Once hailed as a leading figure in the automotive industry, Tavares faced criticism recently due to declining sales in North America, which prompted a profit warning for 2024.
Stellantis has announced plans to find a new CEO by mid-2025 and has set up an interim executive committee led by Chairman John Elkann to manage operations.
Analysts express concerns about the company’s stability, especially after the earlier departure of its finance chief.
JPMorgan noted that this leadership turnover poses significant challenges for investors, likely dampening expectations for earnings growth in 2025.
Jefferies analysts also questioned the sustainability of Stellantis’ global brand model in an industry marked by cyclical and structural hurdles.
The automaker is under pressure to address U.S. overcapacity and sluggish global demand while competing against growing Chinese rivals.
Stellantis’ Paris-listed shares hit a two-year low, falling nearly 9% at one point, and its Milan-listed shares, down 45% year-to-date, were halted during early trading.
With these developments, the market awaits Stellantis’ next moves to stabilize leadership and navigate a challenging landscape for the automotive sector.
