HSBC downgraded Stellantis NV to Reduce from Hold.
The bank lowered its price target for the automaker to €4.00 from €5.50. Rising vehicle inventories and persistent quality control issues prompted the downgrade. Analysts expect the company to implement price and production cuts to manage the surplus.
U.S. inventory levels have climbed to a 93-day supply. This surplus represents an increase of 120,000 units over the previous year.
Stellantis issued 19 recalls in the U.S. during the first half of 2026. These domestic recalls affected 2.5 million vehicles. The company also issued 47 recalls in Europe during the same timeframe. These operational challenges raise concerns regarding near-term profitability and stability.