Key Points:
- Declining gasoline vehicle sales and difficulties competing in the EV industry are crhushing Stellantis (NYSE: STLA)
- These challenges could result in the elimination of the Chrysler brand, which is down to one vehicle
- The company’s strength resides in its Ram, Dodge, and Jeep brands
- Forget dying companies like Stellantis, instead look ahead to ‘The Next Nvidia’ Stocks to power monster returns in 2025
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Transcript:
[00:00:00] Lee Jackson: Right, next up is Stellantis and their guy getting kicked out. If you can just throw it my way, I’ve got some salient points that are pretty saucy.
[00:00:09] Douglas McIntyre: The legacy, car company business continues to fall apart for two reasons. One is just a poor sales of gasoline driven cars. The other one is, is all these guys basically want to compete with Tesla. And the Chinese EV companies, no success. So you see VW falling apart, strikes at their factories, layoffs in their home market in Germany.
[00:00:36] Douglas McIntyre: The other guys who really are in trouble is Stellantis. And they, just, they own Ram, Chrysler, Dodge, and Jeep. So if, you’re a U. S. investor and you don’t know who Stellantis is, that’s what they own in the United States.
[00:00:52] Lee Jackson: I’m going to make a prediction right now. This is, this is a 24 7 bombshell Wall Street prediction. Chrysler’s going to be gone in a year. They, they, I mean, they, they really only have one product and that’s the Pacifica van. When they put that out, they revolutionized the industry, but people don’t buy vans anymore.
[00:01:14] Lee Jackson: I mean, the The Pacifica sales are down 44 percent in the third quarter and something like 27 percent year overall. So I predict, and we’re predicting from the Lee and Doug show, Chrysler’s gone. As a brand, it’s gone.
[00:01:29] Douglas McIntyre: Well, what’s happening is, okay, so it’s Stellantis. They threw out the CES, what, what does that mean for them?
[00:01:38] Lee Jackson: They booted them. And, and I think they’re really trying to decide what to do with the remaining part because as we’ve talked in the past, you know, the ram truck is big. I mean, I live in the south where every other vehicle is a truck. And, you know, while they’re at 150, as we’ve noted ad nauseum is clearly, you know, the hands down where the ram trucks are big.
[00:02:00] Lee Jackson: So that’s a solid franchise and the Jeep franchise is still solid. So, I mean, they have, and you know, the, the Dodge, you know, as a whole is still somewhat solid, but Chrysler is gone and I don’t know. I think there’s a good chance still and us will try to bail from all of it and sell it to somebody.
[00:02:20] Douglas McIntyre: Yeah. Maybe sell to a U. S., one of the U. S., two big two U.
[00:02:24] Lee Jackson: Yeah, well, I think the the Jeep family will stay in business and and and Ram trucks are big. I’m I really been looking at it recently because we’ve discussed this and and they’re they’re clearly a strong second, you know, maybe tied with Chevy, but it’s clearly a strong number too. So they’re going to have to get by with with Ram Dodge and, Jeep and they’ll sell it.
[00:02:49] Douglas McIntyre: Yeah, to me, Stellantis is a speculative, dangerous buy, it is based on whether or not they sell the U. S. units. I think if they hold on to them, the stock stays a dog. they
[00:03:04] Douglas McIntyre: them and they bring in a lot, get a, a big cash payday, which they would get. I mean,those businesses are worth tens of billions of dollars.
[00:03:13] Lee Jackson: Yeah,
[00:03:14] Douglas McIntyre: If you want to take a risk, that’s the, the Stellantis risk, risk is that they sell that stuff and get a pile of cash.
[00:03:22] Lee Jackson: Yeah. Well, Chrysler’s we know it is done and Bill Chrysler, you know, the only thing he’ll have left standing the Chrysler building.
[00:03:30] Douglas McIntyre: Yeah.
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