Jeep and Ram owner, Stellantis disclosed its first-half results recently, and it depicts the 24% raise in global EV sales. Before its North North American EV offensive, Stellantis CEO Carlos Tavares aforementioned that the automaker’s margins were substantially better than that of Tesla and General Motors.
Stellantis CEO remark about Tesla, GM over margins
Stellantis disclosed a record performance in the first half of 2023. This is along with its revenue, adjusted operating income, and net profit achieved over the last year.
Believing on the record then revenue rose 12% YOY to €98.4 billion ($109B). Whereas net profit came in at €10.9 billion ($12B). When it comes to operating income then it may appear at considerable profitability, which was 14.1%.
According to Reuters, while speaking to the reporters, Tavares said, Tesla is “entering my world the world of tight pricing, cost competitiveness, and the operational issues that a big company like ours may face.”
Stellantis’s superior noted how Tesla’s profitability shifted from more than 17% in the first half of 2022 to a huge decline of 10.5% in the first half of 2023.
As forecasted, Tesla’s operating margin dropped in the second quarter. The main cause is the price cuts all over the first half of the year. Along with the cost associated with ramping 4680 cell production and raising expenses driven by the Cybertruck, AI, and other projects.
In particular, the operating margin has declined continuously for three quarters. This is from a peak of 17.2% in Q3 2022 to 9.6% in the most recent quarter. Further, he also stated that Tesla is not the only player as he also mentioned General Motors, which posted margins of 8.3%.
Tavares claimed all automakers, including Tesla, would face competition from Chinese EV makers in their home markets. He said:
If we are racing for the bottom in terms of facing the Chinese with price cuts, Tesla will have problems with that strategy before we do, because we are more profitable than Tesla.
Stellantis focuses on its EV expansion to the US
In addition to this, Tesla constantly efforting for setting new EV delivery records each quarter. On the other hand, Stellantis has yet to reveal its first all-electric car in the US.
Regardless of the success in the EU, the automaker’s first EVs will reach in North America in the second half of the year. It includes the RAM ProMaster electric van and a New Fiat 500 EV.
Stellantis also stated that the “BEV offensive” in North America will keep on expanding next year with eight new EV models. This comprises the Dodge Charge Daytona, Jeep Wagoneer S, and Recon, and RAM 1500 REV electric pickup.
Tavares commented on the first-half results, saying: Our outstanding performance in the first half of this year supports our long-term sustainability and our ability to achieve the bold ambitions of our Dare Forward 2030 plan.
