Automaker Stellantis NV STLA said on Wednesday that it will hold its price positions and not jump aboard the price-cut bandwagon led by Tesla Inc TSLA.
What Happened: Stellantis will hold its price position as it is presently not in direct competition with Tesla in the segments it’s in, CFO Richard Palmer said on the company’s first-quarter earnings call on Wednesday.
Instead, the automaker will focus on managing profitability across the portfolio, Palmer added.
“Overall, we think our price positions are appropriate for the quality and the offering that we make under our main brands,” Palmer said.
Why It Matters: Tesla’s price cuts commenced in about January with price cuts of up to 19.7%. The slew of price cuts enabled better first-quarter deliveries for the EV giant and added pressure on rival EV makers to cut costs to battle competition.
Stellantis, meanwhile, reported revenue growth of 14% year-on-year to EUR47.2 billion in the first quarter, owing to higher shipments as semiconductor supply improved. Consolidated shipments increased 7% year-over-year to 1,476 thousand units.
The company’s inventory also returned to normal levels– total new vehicle inventory as of March 31 was 1,302 thousand units. Palmer expects it will translate to deal inventory and higher sales as logistics issues are resolved.
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Posted In: NewsTop StoriesTechelectric vehiclesEVsRichard Palmer
