Today’s Stocks to Watch: Stellantis and Volkswagen
Key Points To Watch Out For:
- Delivery Hero changes its operating model in Spain, impacting earnings forecasts.
- Volkswagen strike leads to moderate stock declines.
- Stellantis sees an 8% drop after its CEO’s unexpected resignation.
Stellantis (STLA): Stocks Fall on CEO’s Resignation
Stellantis, the automotive group behind brands like Chrysler and Jeep, saw its stock plummet by over 8% in Milan following the unexpected resignation of CEO Carlos Tavares. This sudden leadership change has raised concerns among investors about the company’s future direction.
Adding to the worries, Stellantis has experienced significant declines in both sales and profits this year, underscoring the challenges it faces in navigating an increasingly competitive and rapidly evolving automotive industry.
Volkswagen (VOW3): Strikes in Germany Impact Stocks
Volkswagen workers initiated strikes on Monday across several German plants, protesting the company’s plans to cut jobs and wages. The labor action led to a moderate drop in Volkswagen’s stock prices on the Frankfurt Stock Exchange.
This development underscores the mounting union pressure on automakers as they transition to electric vehicles, which has created new challenges for workforce management and operational costs in the automotive sector.
Delivery Hero (DHER): Strategic Model Shift in Spain
Delivery Hero announced a significant change in its operating model in Spain, moving from a freelance-based workforce to a system of formal employment. The company cited compliance with local regulations as the driving force behind this decision.
However, the shift is expected to negatively affect earnings through fiscal 2025, leading to an 8% drop in its stock price on the Frankfurt Stock Exchange. While the move aligns with regulatory demands, it has raised broader concerns about the sustainability of Delivery Hero’s business model in other markets.
