Part 5/9:
Tavares was a prominent advocate for EV adoption within Stellantis, foreseeing massive consolidation within the automotive industry with expectations that only five major automakers would ultimately remain. However, the company's recent quarterly performance reflects operational hurdles, with a 27% decline in revenue and a 20% drop in U.S. sales, further complicating its path forward.
Regulatory Credits and Financial Implications
Historically, Stellantis relied heavily on purchasing regulatory credits from Tesla, serving as a financial crutch to offset emissions from their combustion engine operations. This reliance was particularly pronounced following the FCA-PSA merger, which aimed to tighten emissions compliance across the now-diverse Stellantis brand portfolio.