US Stock Market News | Stellantis drops more than 9% as first-half profit falls 48%, below expectations

On Thursday, European carmaker Stellantis saw its stock price fall, with the stock dropping over 9% to $17.79 as of the time of writing. The company's first-half profit plummeted by 48% to 5.6 billion euros, far below the market's average expectation of 7 billion euros, due to the adverse effects of reduced sales volume, product portfolio, foreign exchange, and restructuring costs. Revenue also declined by 14% to 85 billion euros. During the period, Stellantis' delivery volume in North America decreased by 18%, with a significant drop in profit margin, mainly affected by declining sales and unfavorable product mix. CEO Carlos Tavares stated that the company's first-half performance fell short of expectations, reflecting both the challenging industry environment and the company's own operational issues. The company is taking corrective measures to address these problems, expecting to save an additional 500 million euros in costs in the second half of the year, while also confirming the launch of 20 new models this year