Stellantis (Stellantis (STLA)) shares are ticking higher Wednesday after the automaker revealed plans to deepen its partnership with China's Dongfeng Group. The two companies signed a non-binding Memorandum of Understanding to form a Europe-based joint venture focused on selling and distributing new energy vehicles (NEVs) — essentially, a pipeline for Chinese-made EVs to reach European customers.
The proposed JV would be majority-owned by Stellantis on a 51/49 split, covering sales, distribution, manufacturing, purchasing, and engineering of Dongfeng's NEVs. Initially, the venture will target select European markets, launching Dongfeng's premium Voyah EV brand. Stellantis will lean on its existing retail and after-sales network to get those cars into showrooms, while also coordinating sourcing and engineering with Dongfeng's China-based NEV operations.
Notably, the partners are exploring local production at Stellantis' Rennes plant in France, which would align with EU regulatory preferences and "Made-in-Europe" requirements. That's a smart move, given the ongoing tariff tensions and the EU's push to keep EV supply chains closer to home.
This isn't the first time these two have worked together. Earlier this month, Stellantis and Dongfeng expanded their existing China-based DPCA joint venture (Dongfeng Peugeot Citroën Automobile Co., Ltd.), which will manufacture new Peugeot and Jeep-branded NEVs at a plant in Wuhan starting in 2027. Those vehicles will serve both the Chinese market and export markets globally.
Stellantis Goes Small and Affordable in Europe
On Tuesday, Stellantis announced another EV push closer to home: a new compact electric vehicle project called "E-Car." Production is slated to begin in 2028 at its Pomigliano plant in Italy. The idea is to revive Europe's shrinking small-car segment with low-cost, fully electric city vehicles designed and built in Europe.
CEO Antonio Filosa said customers are "demanding affordable and environmentally friendly compact cars," and Stellantis plans to deliver using advanced BEV technologies developed with partners to improve affordability and speed up time-to-market.
STLA Technical Outlook: Key Support, Resistance and Momentum
Stellantis shares have had a rough 12 months, down 31.63%. As of Wednesday, the stock is trading 2.3% below its 20-day simple moving average of $7.63 and just 0.2% above its 50-day SMA of $7.44. The moving average convergence divergence (MACD) is below its signal line, suggesting fading momentum. The stock may struggle to maintain upward pressure unless it can reclaim that baseline.
- Key Resistance: $8.50 — a level where rebounds have stalled before.
- Key Support: $7.00 — a level where buyers have stepped in previously.
STLA Earnings Preview and Analyst Price Target Updates
Stellantis is scheduled to report its next financial update on July 30, 2026. Analysts expect earnings per share of 23 cents (up from 20 cents) on revenue of $46.83 billion (down from $84.24 billion). The stock carries a Hold rating with an average price target of $11.00.
Recent analyst moves include:
- Freedom Broker: Downgraded to Hold, target lowered to $8.00 (March 2)
- Freedom Broker: Upgraded to Buy, target lowered to $9.00 (February 10)
- Piper Sandler: Upgraded to Overweight, target raised to $15.00 (January 8)
STLA Price Action: Stellantis shares were up 0.20% at $7.36 at the time of publication Wednesday.
