An Interesting Big Name Is Betting on a Stellantis Turnaround -- Should You?

Core Viewpoint - Stellantis, Ford, and General Motors have diverged in stock performance since 2024, with General Motors doubling its share price, Ford declining by 2%, and Stellantis plummeting by 70% [1] Group 1: Carvana's Strategy - Carvana is acquiring Stellantis dealerships, indicating a belief in a potential turnaround for Stellantis [2][6] - The company is transitioning to a hybrid sales model, combining online and in-person sales, to reach a broader consumer base [4] - Acquiring dealerships expands Carvana's distribution network and provides access to trade-in and off-lease vehicles for refurbishment and resale [5] Group 2: Stellantis' Challenges - Stellantis faces significant financial struggles, including a $26 billion charge for an electric vehicle strategy adjustment, which has negatively impacted its stock price and led to a suspended dividend [8] - The company's global market share has decreased from 8.1% in 2020 to approximately 6.1% in 2025, with some brands requiring substantial investment to boost sales [9] - A major challenge for Stellantis is reviving its North American business, which has suffered from high prices and a poor product mix, prompting a $13 billion investment to reintroduce gasoline-powered and hybrid models [10]