Toronto, Ontario — In this weekly automotive economics report, Stellantis shuts down merger rumours, while EV stocks continue to slip, keeping up with the 2024-thus-far trend.
Stellantis slices down rumours
Stellantis chairman John Elkann has commented on press speculation that the automaker was considering a merger with French OEM Renault, saying there is “no plan under construction regarding merger operations with other manufacturers.”
Speculation began this past Sunday after an Italian daily newspaper suggested the French government—Renault’s largest shareholder and also a stake holder in Stellantis—was studying a merger plan between the two automakers.
The newspaper suggested the French government was considering such a move to compete with Chinese and German competition.
Shares of Renault rose 2.66 percent in response to the rumours on Monday morning, before dropping back down to €35.64 per share, down 0.42 percent from Friday’s close.
Shares of Stellantis, meanwhile, dropped 1.39 percent from Friday’s close, trading at €20.90 per share as of Monday morning, 11 a.m. ET.
EVs still slippin’
In the past five days, shares of Tesla have dropped 9.8 percent; shares of Rivian have dropped 6.92 percent and VinFast share prices have plummeted nearly 12 percent.
These drops are in addition to the already hefty cuts EV makers have seen in 2024. Tesla and Rivian shares remain down nearly 30 percent from the outset of 2024; VinFast shares are down 24.11 percent.
