Stellantis warned investors of a much worse-than-expected financial outlook, resulting in a 13% stock drop. Costs and competition in China contribute to this drastic shift.
Ford shares fell by 3% immediately after Stellantis' announcement, emphasizing growing concerns about its own financial results and the competitive pressures from Stellantis and other automakers.
Stellantis projected it would burn through $5 to $11 billion this year, starkly contrasting its prior forecasts of being cash-positive due to dwindling market shares and rising operational costs.
Chinese manufacturers, equipped with competitive pricing and rapid EV adoption, threaten global automakers like Stellantis and Ford, further complicating their operational landscapes.
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