Light Wave


Stellantis hits milestone with electric vehicle profitability

By Jake Beardslee · February 15, 2024

In brief…

  • Stellantis achieved a milestone by turning a profit on electric vehicles, per CEO announcement
  • Company will continue full speed on EVs while Detroit rivals like Ford and GM pull back
  • Stellantis introducing first EV in US this year amid ongoing transition from gas models
  • Company announced $3.2B share buyback after posting third straight year of record profits
  • CEO expressed confidence in continued growth despite potential impact of EV transition
Stellantis achieved an EV profitability milestone that has eluded other automakers, announcing record earnings and plans to continue full speed on electric vehicles.  Autosdeprimera/Wikimedia

Stellantis, the automaker formed by the merger of Fiat Chrysler and PSA Group, has achieved a major milestone by turning a profit on its electric vehicles, according to CEO Carlos Tavares. This signals an important shift for both electric cars and traditional automakers struggling to make money on EVs. While Tesla only recently became profitable overall, Stellantis is now profiting on EVs while still producing many gas-powered models. In contrast, rivals like Ford and GM have pulled back on EV production after losing billions, as Ford lost over $40,000 per vehicle last year.

Tavares said Stellantis will continue “full speed” on EVs while Detroit competitors slow down, according to CNN. The company will introduce its first EV in the US this year. While Tavares admitted EV margins aren’t yet equal to gas cars, Stellantis is working to close that gap.

After a third straight record profit year, Stellantis announced a $3.2 billion share repurchase program. Though 2022 profits fell 10% to $11 billion in the second half amid a US strike, full year earnings rose slightly. The share buyback exceeds the $1.9 billion Stellantis will pay employees in profit sharing.

Tavares said EV profits may eventually end Stellantis’ record run but expressed confidence in continued growth. The results come as automakers balance transitioning to EVs while sustaining profits from gas models. Stellantis is now achieving both. Its stock jumped on the profit news as traditional automakers aim to follow Tesla into sustained EV profitability.