An Intriguing Major Investor Is Wagering on a Stellantis Comeback — Is It Worth Your Consideration?

Stellantis, Ford, and GM: Diverging Paths Since 2024

Since 2024, Stellantis (NYSE: STLA), Ford Motor Company (NYSE: F), and General Motors (NYSE: GM) have each followed distinct trajectories in the stock market, despite operating in similar sectors. General Motors has seen its share price more than double, Ford has remained relatively flat with a slight 2% decrease, and Stellantis has experienced a steep 70% drop. When investment opportunities arise, sometimes it pays to act—other times, caution is warranted.

A notable player, Carvana (NYSE: CVNA), appears to be wagering on a potential recovery for Stellantis by acquiring its dealerships. But is this a move individual investors should consider as well?

How Carvana Is Transforming Its Sales Model

Carvana has a history of rapid expansion, fueled by significant investment in its early years. While the company is famous for its innovative car vending machines, its primary business has traditionally been online vehicle sales. Recently, Carvana has begun shifting toward a hybrid approach, combining digital and physical sales, as demonstrated by its recent acquisition of another Stellantis dealership.

On the surface, this strategy appears sound. Although many consumers have embraced online car buying, there remains a segment that prefers in-person transactions. By purchasing dealerships, Carvana can reach these customers and also tap into the more lucrative new-vehicle market.

These newly acquired locations, primarily in the Southwestern United States, broaden Carvana’s distribution footprint, which was previously concentrated on the East Coast. Additionally, these dealerships provide a steady stream of trade-in and off-lease vehicles, which Carvana can refurbish and resell.

Carvana could have chosen dealerships from various automakers, but its focus on Stellantis suggests a belief in the company’s potential rebound. The question remains: should investors share this optimism?

Proceed with Caution

Before jumping on the Stellantis bandwagon, it’s important to recognize the hurdles the company faces.

Stellantis is currently grappling with financial headwinds. For example, the automaker recently took a substantial charge of approximately $26 billion in late 2025 to overhaul its electric vehicle strategy. This move led to a sharp decline in its stock price and the suspension of its dividend. To put this in perspective, the charge exceeds Stellantis’s current market value, which is about $20 billion.

Complex Brand Portfolio and Market Share Decline

CEO Antonio Filosa must also manage Stellantis’s extensive lineup of 14 automotive brands, including American staples like Jeep, Ram, and Chrysler, as well as Italian names such as Fiat and Alfa Romeo. However, the latter brands have struggled to achieve global cohesion. According to S&P Global Mobility, Stellantis’s global market share has dropped from 8.1% in 2020 to around 6.1% in 2025, and some brands will require significant investment to regain momentum.

A major challenge lies in revitalizing Stellantis’s North American operations. High prices, an unbalanced product mix, and underperforming brands have led to declining sales and strained relationships with dealerships. Stellantis is investing roughly $13 billion to reintroduce more gasoline and hybrid models in hopes of regaining market share, but this could leave the company trailing competitors in the shift to electric vehicles.

Carvana’s approach of acquiring Stellantis dealerships would be more effective if Stellantis manages a successful turnaround, but such an outcome is not guaranteed. For now, Stellantis may present an opportunity, but it may be wise for investors to wait before taking action.

Is Now the Time to Invest in Stellantis?

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