Stellantis (STLA) Stock Skids After Yet Another Major Safety Recall – When Will the Bleeding Stop?
Another day, another recall for Stellantis. The auto giant's stock is taking a hit after regulators flagged critical safety issues in over 250,000 vehicles. This marks the third major recall this quarter alone.
Investors are growing restless as warranty costs pile up. The latest recall covers faulty airbag sensors and defective braking systems—exactly the kind of headline that makes portfolio managers reach for the antacids.
While legacy automakers scramble to fix combustion-era mistakes, crypto markets are quietly eating their lunch. Decentralized networks don't need recalls—just ask Bitcoin's 14-year immaculate safety record.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Engine Failure
The company whose brands include Chrysler, Dodge and Fiat, will recall 112,859 vehicles in the United States due to a potential engine failure or engine compartment fire.
The National Highway Traffic Safety Administrator cited debris inside the engine as a cause without providing additional details.
The recall affects certain Jeep Grand Cherokee 4xe models between 2023-2025 and Jeep Wrangler 4xe Plug-In Hybrid Electric Vehicle models between 2024-2025, according to the NHTSA.
A loss of propulsion power increases the risk of a crash, while a vehicle fire can raise the risk of injury, the NHTSA added, noting that no solution has yet been identified for the affected vehicles.
It is the latest in a long line of vehicle recalls by the group.
Recall Woes
Earlier this month, Stellantis announced the recall of 375,000 Jeep SUVs due to fire risks, advising owners to park them outside. In October, the automaker also recalled more than 298,000 vehicles in the United States for a potential risk of unintended vehicle movement.
Back in September the NHTSA said Stellantis was recalling nearly 164,000 Jeep vehicles in the United States due to potential door trim detachment problems.
The safety issues, added the NHTSA, involved trim on both the driver and passenger doors that could come off the vehicles and create a potential road hazard.
At a difficult time for the auto industry given tariff uncertainty, rising supply chain costs and faltering consumer confidence, this spate of recalls is an unwelcome hit to brand reputation.
It is why it has been identified as a key risk by the business. Investors need to be wary of such risks before looking to buy stocks.
Is STLA a Good Stock to Buy Now?
On TipRanks, STLA has a Moderate Buy consensus based on 5 Buy, 9 Hold and 1 Sell ratings. Its highest price target is $14.54. STLA stock’s consensus price target is $10.83, implying a 1.98% upside.
