Stellantis (STLAM), one of the world's largest automakers, fell 2.68% intraday after HSBC cut its rating to Reduce from Hold and slashed its price target to 4 from 5.50, implying roughly 21% downside from the prior session. The bank flagged U.S. dealer inventory at 93 selling days in June 2026, up approximately 120,000 units compared to a year earlier, and warned the company may have to repeat the deep price cuts and production curtailments it undertook in 2024 to clear a similar overhang. Stellantis has also issued 19 vehicle recalls covering 2.5 million units in 2026, which HSBC cited as a central quality concern. The stock is trading near its 52-week low of 4.833, well below the 52-week high of 10.494.
Italy production data offered a partial offset. FIM Cisl trade union figures showed Stellantis produced 252,223 vehicles in Italy in the first half of 2026, up 13.7% year-on-year, with passenger car output rising 27.7% to 158,193 units, supported by new Jeep Compass and Fiat 500 hybrid production lines. The Cassino plant was an exception, falling 36.2%. Full-year Italian output is projected at around 500,000 vehicles, still well below the 750,000 produced in 2023 and short of the Italian government's 1 million unit target.