Stellantis N.V. is a multinational automotive manufacturer headquartered in Amsterdam, Netherlands, formed in 2021 through the merger of Fiat Chrysler Automobiles and PSA Group. The company is publicly traded on the New York Stock Exchange (NYSE: STLA), Euronext Paris, and Borsa Italiana. The company's majority shareholder is Exor N.V., which in turn is controlled by Giovanni Agnelli BV, the latter being a financial holding company referable to the Italian Agnelli-Elkan family.

Stellantis designs, manufactures, distributes, and sells vehicles across five categories: (i) luxury vehicles under the Maserati brand; (ii) premium vehicles under the Alfa Romeo, DS, and Lancia brands; (iii) global sport utility vehicles under the Jeep brand; (iv) vehicles from Abarth, Citroën, Fiat, Opel, Peugeot, and Vauxhall. The company streamlines design, engineering, development, and manufacturing operations through a centralized approach, aiming at maximizing its efficiency on a global scale. Additionally, Stellantis complements its vehicle sales with the distribution of spare parts, accessories, and service contracts worldwide, while also providing retail and dealer financing, leasing, and rental services through its subsidiaries, joint ventures, and commercial agreements with third parties.

Between February 15, 2024, and July 24, 2024, Stellantis and its executives misled investors by making false and/or overly optimistic statements regarding the company’s financial performance and perspectives, with particular emphasis on crucial items of its financials as: (i) the reduction of the inventory levels; (ii) the improvements on the selling price of its vehicles; (iii) the expansion of its product offering; (iv) the positive industrial cash flow; (v) the 2024 double-digit outlook on the adjusted operating income. By way of example, during the February 15, 2024, Earnings Call, Stellantis’ Chief Executive Officer, Mr. Carlos Tavares, stated that:

“We are able to ramp up. We are ready for this competition and we are gaining significant volume in '23. We expect to gain more volume in '24. [...] And we see that the response from the market is very strong and we see our order book getting filled week after week. So, we believe that we can do a better job in Europe in 2024. [...] We expect that this year is going to exceed the $10 billion target of 2024, and this already represents a tripling of what we did in 2022. So, very fast growth, very efficient growth, and this is going to give us a very important tool on the comeback on the share that we expect in North America, in the U.S. [...] We are highly profitable, among the most profitable companies that you can find in this business. We are, for sure, the most resilient, with the lowest breakeven point [...] We committed to you that we would double the net revenue of the company by 2030 compared to 2021 [...] Right now, we are working on that and we are progressing quite quickly [...] And in profit, they doubled the profit in 2023 against 2022. So, on that front, we are ahead of plan. [...] We see that we have the right products, we have the right pricing, we have the right teams, and most importantly, we are reinforcing significantly the local sourcing for the local markets”.

On a similar note, Stellantis’ Chief Financial Officer, Mrs. Natalie Knight, declared during the same Earnings Call:

“Going forward, despite our continued focus on pricing discipline, we don't expect further inventory increases of any materiality in 2024. [...] Along with the industrial free cash flow, these KPIs prove that we are in a position to both ensure strong resiliency as well as continue to deliver substantial capital returns. [...] As we begin '24, let me emphasize that we see a largely supportive revenue backdrop for the industry. With moderating interest rates as the year progresses, which should support improving affordability and therefore, higher consumer demand, we also believe supply conditions are nearing pre-COVID and semiconductor crisis levels and that our own delivery logistics have improved significantly”.

Contrary to what the market was optimistically told since (at least) the presentation of the full year-2023 financial results dated February 15, 2024, Stellantis was internally facing a declining market share in North America, worsening inventory performance, and an inability to accurately forecast sales and revenue.

The aforementioned (incorrect and/or deceptive) official statements from Stellantis and its pro tempore C-level managers eventually inflated Stellantis' stock price, creating a false perception of financial stability and growth expectations.

Only on July 25, 2024, with the publication of the first-half 2024 financial results, Stellantis revealed that its net revenues registered a 14% decline compared to H1 2023, with a net profit down 48% with respect to the same period. The stark contrast between these results and prior optimistic statements led to a sharp decline in Stellantis' stock price, resulting in significant investor losses, with a drop of more than 30% in the 90 days following the publication of the results of the first half 2024.

Regulatory and Legal Allegations

Investigations into Stellantis’ financial disclosures indicate that the company engaged in deceptive practices by overstating its financial health and misrepresenting its operational challenges. Stellantis’ executives allegedly knew that inventory issues were worsening, pricing strength was deteriorating, and sales forecasts were unreliable, yet they continued to provide misleading reassurances to the market.

The failure to maintain adequate forecasting processes contributed to the company’s eventual financial downturn. When Stellantis was forced to acknowledge these issues publicly, its stock price dropped sharply, confirming that previous statements had misled investors.

Our Proposal

Martingale Risk is organizing a collective action in the Netherlands to support investors who suffered financial losses due to Stellantis' misleading disclosures and financial misstatements. The initiative will focus on holding Stellantis accountable and securing the best possible recovery for affected investors. The legal strategy will involve an extra-judicial negotiation with Stellantis and/or participation in legal proceedings in the Netherlands to recover losses suffered by shareholders. We will operate on a full contingent fee basis of the recovered amount, with no anticipated costs, fees or expenses for the clients.

Investors who purchased or acquired Stellantis N.V. securities between February 15, 2024, and July 24, 2024, may be eligible to participate and seek compensation for their losses.

Securities Identifiers