Stellantis CEO concerned 2024 elections may slow EV sales

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Stellantis CEO concerned 2024 elections may slow EV sales
Credit: © Reuters.

Stellantis (NYSE: STLA ) CEO Carlos Tavares on Wednesday, expressed concerns about the upcoming major elections in the U.S. and the United Kingdom (UK) in 2024, cautioning that the political landscapes might influence the market for electric vehicles (EVs).

During a press conference at Stellantis’s Mirafiori plant in Italy, Tavares expressed concerns about a potential deceleration in the adoption of electric vehicles.

He emphasized the risk of a shift in public opinion away from EVs, potentially resulting in reduced sales. However, he refrained from specifying the potential consequences if emissions regulations were to be reversed in the coming years.

Tavares stated that Stellantis might have to adjust its strategy “if political and public opinion tends toward fewer EVs.”

“One of my tasks is to prepare the company for new framework conditions. We have plans prepared for this,” Tavares added.

As of now, Stellantis remains committed to advancing the Dare Forward 2030 plan, which entails achieving 100% sales of battery-electric vehicles (BEVs) in Europe and 50% in the U.S. at the beginning of the upcoming decade.

The announcement coincides with widespread concerns among companies and observers regarding a potential slowdown in EV demand. There's a prevailing belief that consumers might delay purchases, anticipating more affordable models set to enter the market in a few years.

Earlier this month, Stellantis unveiled its intention to offer voluntary buyouts to 6,400 employees, a move aimed at reducing costs as the company navigates its transition toward EVs.

Earlier this year, the European Union (EU) unveiled its intentions to prohibit the sale of gasoline-powered vehicles by 2035, mirroring a comparable mandate passed in California in 2022.

More recently, several states in the U.S., including New Jersey, have also set 2035 as the target year to ban the sale of gas-powered cars.

Shares of STLA are up 5.09% near end of day trading on Wednesday.

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