Sep. 9 at 11:02 AM
$STLA
Stellantis feels like a classic value trap masquerading as a value opportunity. The numbers look compelling—strong cash flow, reasonable debt levels, industry-leading margins. But the automotive industry is in the middle of its biggest transformation since Henry Ford invented the assembly line.
The company has some genuine advantages: beloved brands with pricing power (Jeep), strong positions in profitable segments (trucks), and the scale to compete in the EV transition. But they're also facing existential challenges that could make today's financial metrics irrelevant.
If you believe that Stellantis can successfully electrify their portfolio while maintaining brand loyalty and margins, this could be the deal of the decade. If you think the EV transition will be more disruptive than management expects, that 193% upside could easily become a 50% downside.
https://stratafinance.beehiiv.com/p/stellantis
