Stellantis (STLA) Is a ‘Bad House in a Bad Neighborhood’

Listen up, folks! We need to talk about Stellantis (STLA). This stock is a disaster, and it's time to face the music. Stellantis is a 'bad house in a bad neighborhood,' and if you're holding onto this stock, you're playing with fire. Let me break it down for you.

First off, the numbers don't lie. Stellantis has been on a downward spiral. Over the last four weeks, the stock has lost 16.43 percent, and over the last 12 months, it's down a whopping 58.12 percent. That's a bloodbath, folks! The company is trading at 3x earnings, under book value, and supports a 26% ROE. Sounds good, right? Wrong! These metrics don't tell the whole story. The company is facing massive challenges, and the market is taking notice.



Stellantis is trying to pivot into EV battery manufacturing, but this move is more about cutting costs than innovating. They're planning to release 3,500 workers from their 56,000 US workforce. That's a massive layoff, folks! This isn't a company that's investing in the future; this is a company that's desperate to stay afloat.

And let's not forget about the competition. Stellantis just invested $2 billion CAD into a Chinese EV manufacturer. Why? Because they see an onslaught of cheaper imports coming into Europe, and they're trying to stay ahead of the game. This is a company that's playing catch-up, not leading the charge.



But here's the kicker: Stellantis is facing significant labor challenges. The UAW has a $825 million strike fund to help workers if a walkout happens. They have the potential to go after all of the Big 3: General Motors (GM), Chrysler owner Stellantis (STLA) and Club name Ford (F). The union has never done that in its 88-year history. 150,000 UAW members working at the three automakers. Estimate: a 10-day strike $5 billion in economic losses. This is a recipe for disaster, folks!

So, what's the bottom line? Stellantis is a 'bad house in a bad neighborhood,' and you need to stay away from this stock. The company is facing massive challenges, and the market is taking notice. Don't be a fool and hold onto this stock. Sell now, and save yourself from the impending disaster.