Stellantis (STLA) Reveals Bold Strategy to Supercharge Its Ram Brand Revival
Stellantis isn't just reviving Ram—it's rewriting the playbook. The auto giant's electrified roadmap for its truck division could either be a masterstroke or another case of 'too little, too late' in an industry racing toward an all-electric future.
Betting big on brains over brawn
Forget diesel-guzzling dinosaurs. The new Ram lineup will pack AI-assisted towing and battery tech that actually works in sub-zero temps—assuming the software engineers deliver on their PowerPoint promises.
Wall Street's skeptical grin
Analysts nod politely while quietly calculating how many $80K electric pickups it'll take to move the needle for a conglomerate that still makes most its profits selling combustion engines to people who think 'torque' is a cryptocurrency.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
Ram’s recent struggles are due to several issues, such as poor timing of model launches and a problematic redesign of the Ram 1500 that caused ongoing production delays. Indeed, this led to the Ram 1500’s market share in the full-size truck segment to decline from 17.8% in 2019 to just 8.4% recently. However, Kuniskis, who came back during a leadership shakeup, is now leading a turnaround that’s already showing signs of progress.
Interestingly, the plan includes more than just product updates. In fact, Kuniskis launched a new marketing push called “Nothing Stops Ram” and even handed out wristbands with the slogan “Last Tenth LFG” to motivate his team and rebuild trust with dealers. So far, dealers are responding positively by saying that the brand is on track to regain lost ground. In addition, Ram’s electrification plans are being delayed due to weak demand, but a plug-in hybrid truck with up to 690 miles of range is expected to launch soon. Kuniskis believes that this model will be a major asset in the comeback.
Is STLA Stock a Good Buy?
Turning to Wall Street, analysts have a Hold consensus rating on STLA stock based on four Buys, 10 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average STLA price target of $11.59 per share implies 13.7% upside potential.