Should I buy Stellantis stock in 2025? (Canada Guide)

What is Stellantis?

How much is Stellantis stock?

The price of Stellantis stock is declining this week. Stellantis is trading at $10.75 USD, with a 24-hour change of -0.22% and a weekly decrease of -1.5%. The company has a market capitalization of $30.86 billion and sees an average daily trading volume of about 19.46 million shares over the past three months.

With heightened volatility and ongoing business transitions, Canadian investors should watch for further movement and evaluate potential risk and value opportunities.

Our full analysis on Stellantis stock

After a detailed review of Stellantis's latest financial results and a multi-year assessment of its stock performance, our team deployed advanced analytics—converging financial, technical, and sectoral data with competitive benchmarking—to form a holistic investment thesis. Stellantis has faced substantial challenges but now trades at a distinctive valuation supported by robust income and an attractive yield. Given these dynamics, what makes Stellantis a potentially strategic re-entry point for forward-looking investors in the global automotive sector as 2025 approaches?

Recent Performance and Market Context

Over the past twelve months, Stellantis shares (NYSE: STLA) have traded in a notably volatile range, recently settling at $10.75 per share as of May 19, 2025. While the past year has delivered a material decline of -51.88%—amplified by a 38% contraction over six months—the stock's pronounced correction reflects both internal adjustments and pronounced sector pressures.

Amidst short-term headwinds, including executive transition and subdued sales, several underlying macroeconomic factors remain favorable:

• Automotive Sector Stabilization: Western economies, particularly in North America and Europe (core Stellantis regions), are projected to rebound in late 2025 as supply chains normalize and pent-up consumer demand for auto replacement cycles resumes.
• Robust Dividend Commitment: Stellantis continues to uphold a forward dividend yield of 7.16%, signaling confidence in its cash flow generation even through sector inflections.
• Analyst Consensus: The mean target price of $13.98 reflects an estimated upside of nearly 30% from current levels, indicating that market participants may perceive the current valuation as unduly punitive.

Despite the recent leadership shake-up and the temporary suspension of forward financial guidance, Stellantis’s shares now appear to have discounted a considerable degree of uncertainty. Often, such periods of capitulation serve as the seedbed for the next phase of value-oriented accumulation.

Technical Analysis

A rigorous technical review underscores the intriguing positioning of Stellantis at this juncture:

• Relative Strength Index (RSI): Standing at 46.1, the RSI for Stellantis no longer signals oversold conditions but underscores potential for renewed upside should momentum reverse.
• MACD: The MACD at -0.05 suggests ongoing consolidation—a classic prelude to trend reversals when accompanied by robust support.
• Moving Averages:
• The current share price is modestly above the 50-day MA ($10.57), implying early signs of near-term stabilization while still trailing the longer-term 200-day MA ($13.10).
• Support and Resistance Levels: Technical supports at $10.77, $10.71, and $10.63 have repeatedly attracted buying interest, while resistance at $10.91 through $11.05 offers nearby upside targets.

Although situated within a broader downtrend, Stellantis is displaying the classic hallmarks of a consolidative base. Outperformance in the short-term would likely coincide with a convincing break of the $11.05 resistance—a probable trigger for algorithmic and discretionary buying.

Fundamental Analysis

Beneath the episodic volatility, Stellantis’s operational and valuation profile remains notably compelling:

• Valuation Edge: At a trailing P/E ratio of 5.23 and forward P/E of just 4.31, Stellantis trades at a significant discount to global automotive peers and the market at large, suggestive of deeply embedded pessimism.
• Profitability and Yield: Despite a 14% YoY decline in Q1 2025 revenue (€35.8 billion), the company reported $5.47 billion in FY2024 net income and continues to fund an enviable dividend. The EBITDA of $10.7 billion confirms operational resilience and cash flow visibility.
• Strategic Expansion and Innovation: The Leapmotor joint venture places Stellantis at the vanguard of Europe’s intensifying EV race. Investments spanning 14 major automotive brands anchor its position as a diversified, innovation-focused leader.
• Global Brand Architecture: Notably, Stellantis commands influential global presence, spanning North America (Jeep, Dodge, Chrysler), Europe (Peugeot, Citroën, Fiat), and high-growth markets—enabling the group to pivot resources and R&D dynamically.

The current valuation not only appears to reflect recent difficulties but may also significantly underestimate Stellantis’s long-term free cash flow power and the optionality embedded in its transformative strategy.

Volume and Liquidity

Stellantis’s shares are actively traded, with a recent average daily volume of 19.46 million shares, ensuring ample liquidity and cost-efficient execution for institutional and individual investors alike.

Key observations supporting the investment case:

• Liquidity Depth means investors can take or adjust positions responsively around technical events.
• Float Composition: With institutional ownership above 52% and insider holdings of 25.48%, the shareholder base is characterized by engaged, long-term capital, moderating volatility during market drawdowns and amplifying upturns when sentiment shifts.

This high liquidity and committed ownership profile support dynamic, value-sensitive repricing, especially as catalysts emerge.

Catalysts and Positive Outlook

The risk-adjusted outlook for Stellantis is increasingly defined by its ability to execute on transformational initiatives that can unlock material value:

• CEO Succession and Strategic Clarification: The appointment of a new chief executive post-Tavares is expected to deliver renewed strategic focus and market confidence. Leadership transitions typically mark inflection points in large capitalization stories.
• Leapmotor Joint Venture and EV Push: The deepening commitment to electric mobility—via the Leapmotor partnership and core brand electrification—positions Stellantis to participate fully in the multi-decade global EV transition.
• Cost Rationalization: Aggressive cost-cutting measures initiated since late 2024 are set to support margin stabilization, even amid current shipment headwinds.
• ESG Momentum: Stellantis’s investments in sustainable mobility, compliance with tightening European regulations, and a clear ESG narrative are positive differentiators for attracting global capital flows.
• Sector-wide Recovery: Macroeconomic forecasts for 2025 anticipate a cyclical rebound in the broader automotive sector as input costs normalize, consumer rates stabilize, and EV adoption rates accelerate.

As visibility and sentiment improve on these fronts, Stellantis may well find itself re-rated—not only on earnings recovery but on proof of its capacity to shape the future mobility landscape.

Investment Strategies

Given the above, Stellantis presents an interesting proposition for investors with varying time horizons:

• Short Term:
• Momentum traders seeking technical reversals may find a strong entry point at current support levels ($10.63–$10.77), with a clear risk/reward set-up targeting a break above $11.05 and the next major resistance zone.
• Monitor high-impact news flows, especially leadership announcements and quarterly updates.
• Medium Term:
• For those targeting value mean-reversion, Stellantis offers an attractive entry: it trades well below historical averages on both an absolute and relative (peer) basis.
• The ongoing cost rationalization initiatives and anticipated sectoral rebound may unlock material price appreciation over the next 6-18 months.
• Long Term:
• Long-term investors focused on structural transformation and dividend compounds could see the current valuation as a unique opportunity. The blend of high current yield, established brands, and deep investment in EVs increasingly positions Stellantis to navigate and benefit from the major trends redefining global transportation.
• Gradually averaging in around current lows or on any further technical retracement could optimize cost basis ahead of the next cyclical upswing.

Is it the Right Time to Buy Stellantis?

In summary, Stellantis currently embodies a classic case of market overreaction, where near-term operational headwinds and leadership transitions have driven shares to a deep-value territory—despite enduring structural strengths. With liquidity robust, valuation metrics at multi-year lows, a healthy dividend, and a pipeline of strategic catalysts on the horizon (notably the upcoming CEO appointment and EV market inflection), the opportunity appears especially attractive from a risk-adjusted perspective.

For investors searching for an undervalued entry into the next phase of the automotive technology transformation, Stellantis stands out as a stock whose compelling fundamentals and recovery catalysts justify renewed interest. As sentiment shifts and executional momentum builds, Stellantis may be poised for a significant rerating through 2025 and beyond—warranting close attention as a strategic addition to a diversified investment portfolio.

The convergence of deep value, operational resilience, and transformative ambition underscores why Stellantis seems to represent an excellent opportunity for investors prepared to look beyond short-term volatility and position for the sector’s next growth chapter.

How to buy Stellantis stock in Canada?

Buying Stellantis stock online is a simple, secure process when you use a regulated broker in Canada. Whether you’re looking to become a shareholder through a direct (spot) purchase or to trade with flexibility via Contracts for Difference (CFDs), both methods are accessible from your computer or smartphone. Spot buying means you own the shares outright, while CFDs let you speculate on price movements with leverage, without owning the stock. Further down this page, you’ll find a comprehensive broker comparison to help you choose the right platform for your needs.

Spot (Cash) Buying

A cash purchase means buying Stellantis stock directly—making you an official shareholder eligible for dividends and voting rights. Canadian brokers typically charge a fixed commission per order, usually ranging from $5 to $10 CAD. Let’s look at a concrete example: if the Stellantis share price is $10.75 USD (approx. $14.70 CAD, depending on FX rates), and you invest $1,000 CAD, you could purchase around 67 shares after factoring in a $5 commission.

Gain scenario

If the share price rises by 10% and your shares are now worth $1,100 CAD, your gross gain would be $100—representing a +10% return on your investment, minus any currency conversion costs or taxes.

Trading via CFD

CFDs (Contracts for Difference) on Stellantis shares offer a flexible way to trade price movements, often with leverage, but you don’t actually own the underlying shares or receive dividends. Instead, you speculate on whether the stock will rise or fall. Canadian CFD brokers charge a spread (the difference between the bid and ask price) and overnight financing (if you hold your position open beyond market hours).

Example

For example, with a $1,000 CAD stake and 5x leverage, you gain exposure to $5,000 CAD worth of Stellantis shares.

Gain scenario

If the stock rises by 8%, your position would earn 8% × 5 = 40%, resulting in a $400 gain on your $1,000 stake (before subtracting any spread or overnight fees). Please note that while leverage magnifies potential gains, it also increases possible losses.

Final Advice

Before you invest, it’s vital to compare brokers’ fees, platforms, and conditions to find the best fit for your goals and preferences. Remember, the right method—whether direct spot buying or CFD trading—depends on your risk tolerance, investment horizon, and whether you want to own the shares or optimize for flexibility and short-term trading. You’ll find a detailed, up-to-date broker comparison further down this page to help you make your decision with confidence.

Our 7 tips for buying Stellantis stock

The latest news about Stellantis

Stellantis confirmed a strong commitment to shareholder returns with a recent annual dividend yielding 7.16%. On May 5, 2025, the company proceeded with its scheduled dividend payment at a forward annual rate of $0.77 per share, underscoring the group’s robust dividend policy even amid operational headwinds. For Canadian investors, this outcome is especially relevant given the stock’s listing on the NYSE and applicable dividend tax considerations, as income may be subject to Dutch withholding tax—a factor to integrate into yield calculations—but the high payout remains above sector averages, adding clear value potential from a total returns perspective.

Despite macro and industry challenges, Stellantis sustains solid financial health, evidenced by resilient profitability and cash flow. 2024’s full-year results saw the company post a net income of $5.47 billion and EBITDA of $10.7 billion, with forward P/E at a conservative 4.31. While revenues declined, such profitability provides reassurance for Canadian analysts monitoring the company as a global automotive player with operations (including assembly and R&D) in Canada, ensuring continued investment benefits and workforce stability locally, which supports long-term stakeholder confidence.

Stellantis advances its strategic pivot to electric vehicles through a high-profile joint venture with Leapmotor, reinforcing its innovation pipeline. This alliance signals ongoing commitment to electrification—a central theme for Stellantis’s Canadian operations, notably at facilities like Windsor Assembly, where EV development is prioritized within the North American footprint. For the Canadian market, this collaboration is expected to deliver new EV models aligned with federal green mandates and evolving consumer demand, enhancing Stellantis’s relevance and long-term growth prospects in the region.

Analyst sentiment points to undervaluation, with the average 12-month target price suggesting over 30% upside for Stellantis stock. Notwithstanding a -51.9% 1-year performance and recent technical downtrend, the consensus target price of $13.98 per share indicates significant potential for price appreciation from current levels. The low valuation—P/E at 5.23—and institutional ownership above 52% reflect a degree of market validation, an important context for investment professionals in Canada weighing risk/reward given the recent selloff.

Stellantis’s Canadian presence underpins positive local economic impacts, supporting skilled employment and technological leadership in the sector. The company operates major plants and innovation hubs in Ontario, serving as a vital partner to Canadian suppliers and an enabler of regional export growth. Ongoing investments in EV production capacity and R&D in Canada also align with national policy objectives for clean technology transition, positioning Stellantis as a leading contributor to the country’s automotive and industrial evolution.

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P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.