Stellantis Q3 Deliveries Up 13%: A Strategic Inflection Point for the EV Transition?

Stellantis's Q3 2025 results-1.3 million global deliveries, up 13% year-over-year-signal a rebound in operational momentum, driven by strong ICE sales in the U.S. and Europe. However, the question remains: Can this growth translate into long-term value creation amid the company's evolving EV transition strategy?

Operational Momentum: ICE Dominance and Strategic Flexibility

Stellantis's U.S. Q3 sales rose 6% to 324,825 units, fueled by the return of the HEMI V8 in the Ram 1500 and Jeep's electrified Wrangler and Grand Cherokee models, according to Mopar Insiders. The Ram brand alone saw a 26% retail sales surge, while Dodge's Durango achieved its best Q3 sales in two decades. These figures underscore the enduring demand for internal combustion engines (ICE) in segments like trucks and SUVs, where Stellantis holds a dominant market position.

The company's "xEV strategy"-a pivot from an all-electric focus to a multi-energy approach-has allowed it to balance electrification goals with market realities. By incorporating battery electric vehicles (BEVs), plug-in hybrids (PHEVs), and mild hybrids (MHVs), Stellantis has mitigated the risk of over-reliance on EVs while maintaining flexibility to adapt to regional demand. For instance, the Jeep Wrangler 4xe remains America's best-selling PHEV, and the Grand Cherokee 4xe ranks third in the category. This hybrid approach has also enabled Stellantis to secure a 17.3% share of the EU30 hybrid market in Q1 2025, up 1.9 percentage points from Q4 2024, according to Stellantis's Q1 report.

EV Transition: Progress, but Persistent Challenges

Despite these gains, Stellantis's EV transition remains uneven. In Europe, where the company aims for 100% BEV sales by 2030, EVs accounted for just 14% of sales in 2025-below the 21% threshold needed to meet EU emissions targets, according to a MarkLines report. To bridge this gap, Stellantis has resorted to purchasing carbon credits, primarily from Tesla, the report notes. Meanwhile, in the U.S., where EV adoption lags, the company's EV market share in Q2 2025 stood at 3.6%, driven largely by PHEVs rather than pure BEVs, according to TheGlobalStatistics.

The company's €30 billion investment in electrification and software since 2021 has yielded mixed results. While Stellantis has launched models like the Jeep Avenger and Chrysler Airflow, its U.S. EV rollout has been slower than competitors. For example, General Motors reported 15.2% U.S. EV market share in Q2 2025, with EV sales doubling year-over-year, according to MotorTrend. Ford, despite a 5.5% share, has committed $30 billion to EVs through 2025, MotorTrend notes. Stellantis's reliance on PHEVs, while strategically prudent, risks leaving it behind in the race for pure BEV dominance.

Strategic Inflection Point? Assessing Long-Term Value

Stellantis's Q3 performance highlights a critical tension: the company's ability to leverage ICE strength in the short term versus its need to accelerate EV adoption for long-term sustainability. The revival of the HEMI V8 and the success of PHEVs like the Wrangler 4xe demonstrate that Stellantis can capitalize on current market preferences. However, the automotive sector's long-term trajectory is undeniably electric.

Key to Stellantis's success will be its execution of the "Dare Forward 2030" plan, which includes 75 BEV models globally by 2030 and the STLA modular platform to reduce costs. The company's partnerships with LG Energy Solution and CATL for battery production in Canada and Spain are promising, but scaling these efforts will require overcoming supply chain bottlenecks and consumer hesitancy.

Moreover, Stellantis's decision to extend the expired $7,500 federal EV tax credit for existing inventory through 2025 is a short-term boost but does not address structural challenges like high EV pricing and limited charging infrastructure. Competitors like Tesla, with its 48.5% U.S. EV market share in Q2 2025, have demonstrated that affordability and brand loyalty are critical differentiators.

Conclusion: A Work in Progress

Stellantis's Q3 2025 results reflect operational resilience in ICE-driven markets, but the company's EV transition remains a work in progress. While its xEV strategy provides flexibility, it also risks diluting its commitment to pure BEVs at a time when global regulators and consumers are increasingly prioritizing zero-emission vehicles. For Stellantis to achieve long-term value creation, it must balance short-term profitability with aggressive EV innovation, leveraging its platform efficiencies and partnerships to close the gap with Tesla, GM, and Ford.

The coming years will test whether Stellantis can transform its Q3 momentum into a sustainable EV leadership position-or if it will remain a laggard in the race to electrify the automotive industry.