Maserati's Existential Crossroads: Why Stellantis Must Choose Divestiture or Perpetuate Losses

Stellantis finds itself at a pivotal juncture. The automaker's luxury division, Maserati, has become a financial albatross, with its 2024 sales collapsing by 57% to just 11,300 units—far below the 26,600 sold in 2023—and an €260 million operating loss. These figures, coupled with a 66% plunge in Stellantis' stock since March -2024, underscore a stark reality: retaining Maserati risks further erosion of shareholder value. The question now is not whether Stellantis should pivot, but whether it can act swiftly enough to avoid becoming a cautionary tale of overextension in a consolidating auto industry.

Market Pressures: The Perfect Storm for Maserati

The brand's decline is no accident. Three forces are conspiring against it:
1. U.S. Tariff Headwinds: Luxury imports face punitive tariffs, disproportionately impacting Maserati's higher-margin vehicles. Stellantis' suspension of 2025 financial guidance due to tariff uncertainty signals how destabilizing these policies have become.

2. Chinese EV Competition: While NIO and BYD dominate EV growth in critical markets, Maserati's electric Folgore lineup has flopped—selling just 150 units in key European markets in 2024. Chinese firms now offer premium EVs at prices that undercut Maserati's outdated, high-cost strategy.
3. Internal Misalignment: Stellantis' 14-brand portfolio—spanning Jeep, Ram, and Peugeot—is overextended. Maserati's operational failures, including a 58% drop in Grecale SUV production, highlight its inability to compete in the SUV/EV crossover segment.

Financial Strain: A Losing Proposition

The numbers are unequivocal. Maserati's €260 million loss in 2024 marked a reversal from a €141 million profit in 2023, with its adjusted operating margin collapsing to -25%. Stellantis has already scrapped a €1.5 billion investment in Maserati, axing projects like the electric MC20 Folgore. This capital reallocation to profitable divisions like Jeep and Ram is a tacit acknowledgment that Maserati's current trajectory is unsustainable.

The boardroom is split. Some directors advocate selling Maserati to Chinese automakers like Chery or Geely—both eager to acquire Western luxury brands to boost their global credibility. Others resist, fearing a sale would erode Stellantis' prestige. Yet with shares trading at $9.55—well below the $11.23 average analyst target—the market is already pricing in a worst-case scenario.

Investor Implications: Divestiture as a Strategic Necessity

The calculus for investors is clear: Maserati's fate hinges on whether Stellantis can execute a turnaround or accept that its brand is a relic in a fast-evolving sector. Key risks include:
- Execution Risk: Even if Stellantis retains Maserati, its CEO, Santo Ficili, has no credible path to profitability by 2026. The brand lacks a compelling product roadmap, dealer trust is fractured, and its core customer base is shrinking.
- Divestiture Premium: Selling Maserati to a Chinese buyer could unlock value. Chery or Geely might pay a premium for the brand's heritage and distribution channels, while Stellantis could redeploy capital to higher-margin segments like Ram trucks or Dodge's muscle cars.

Investment Call: Reduce Exposure Until Clarity Emerges

Investors should tread carefully here. Stellantis' stock trades at 3.7x EV/EBITDA, a discount to peers like Ford (4.2x) and Renault (5.1x). While this implies undervaluation, the Maserati question introduces binary risk:
- Bear Case: If Stellantis retains Maserati, losses could widen, dragging down margins and valuation multiples.
- Bull Case: A swift sale would free up capital, improve focus, and align the stock with its $11.23 target.

Until Stellantis commits to a definitive plan—divestiture or aggressive restructuring—investors should reduce exposure. The current price assumes a middling outcome; the upside is limited without clarity, while downside risk persists.

Conclusion: The Luxury of Time Has Run Out

Stellantis' shareholders deserve a clear answer: Will Maserati be revitalized or jettisoned? The evidence points to the latter. With Chinese automakers hungry for premium assets and Stellantis' portfolio crying out for simplification, the rational choice is to cut losses and move on. Until that happens, investors are better served watching from the sidelines.

The clock is ticking. For Stellantis, the difference between stagnation and resurgence may come down to one hard decision: Let go of the past or risk becoming its prisoner.