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Stellantis' (STLA) EV Vision to be Powered by SiliconAuto
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As the world embraces electric vehicles (EVs) on a grand scale, the demand for advanced semiconductors in the auto industry has skyrocketed. These tiny but vital components are the backbone of computer-controlled features and modules, enabling the seamless integration of cutting-edge technology in vehicles.
Recognizing the increasing importance of semiconductors in the automotive sector, Italian-American auto manufacturer Stellantis (STLA - Free Report) has teamed up with Hon Hai Technology Group ("Foxconn") to establish SiliconAuto, a 50/50 joint venture. This collaboration aims to design and distribute a range of state-of-the-art semiconductors, catering to the evolving needs of the automotive industry, including Stellantis, starting in 2026.
SiliconAuto to Turbocharge Stellantis' EV Push
SiliconAuto is an exciting new endeavor resulting from the strategic partnership between Stellantis and Foxconn. Drawing upon Foxconn's expertise and vast experience in the ICT industry and Stellantis' comprehensive understanding of global mobility requirements, SiliconAuto is poised to revolutionize the semiconductor landscape for the automotive sector. The joint venture will offer an auto industry-centric source of semiconductors, focusing on computer-controlled features and modules, with particular emphasis on EVs.
By tailoring chips specifically for the new generation of automotive vehicle platforms, Netherlands-based SiliconAuto will provide Stellantis and other customers with a reliable supply of cutting-edge semiconductors. Among the notable products is STLA Brain, Stellantis' innovative electrical/electronic and software architecture that boasts full over-the-air updating capabilities. This technology ensures that Stellantis vehicles remain at the forefront of innovation, delivering exceptional capabilities long after they roll off the assembly line.
By joining forces with Foxconn in the SiliconAuto joint venture, Stellantis secures a competitive advantage in this transformative market. With access to a dedicated supply of state-of-the-art semiconductors, the automaker can accelerate the development and production of next-generation EVs, ultimately contributing to the mass adoption of electric mobility and the realization of a cleaner, greener future.
Stellantis' Electric Dreams
Stellantis’ ambitious Dare Forward 2030 strategy aims for a complete transformation of its vehicle lineup. The company aims to attain a significant milestone by capturing 100% of the passenger car BEV sales mix in Europe and 50% of the sales mix for passenger cars and light-duty trucks in the United States. By 2030, Stellantis aims to have 75 models in its BEV lineup and achieve an annual sales of five million BEVs worldwide.
It plans to invest a total of EUR 30 billion in electrification technology by mid-decade to provide best-in-class BEVs to its customers. The investment will help the automotive manufacturer slash its carbon footprint by half by 2030 from 2021 and achieve carbon neutrality by 2038.
If Stellantis succeeds in achieving its sales target as outlined in the Dare Forward plan, it has a higher possibility of doubling its revenues by 2030 compared to the start of the decade, maintaining double-digit adjusted operating margins throughout the decade and becoming number one in providing exceptional products and services in every market by 2030. The company currently carries a Zacks Rank #2 (Buy).
Top-Ranked Auto Stocks
Allison Transmission (ALSN - Free Report) is a manufacturer of fully-automatic transmissions for medium and heavy-duty commercial and heavy-tactical U.S. defense vehicles.
The Zacks Consensus Estimate for ALSN’s 2023 sales and earnings implies year-over-year growth of 7.5% and 19.5%, respectively. The company surpassed earnings estimates in three out of four trailing quarters and missed once, the average surprise being 12.8%. The stock currently flaunts a Zacks Rank #1 (Strong Buy).
Li Auto (LI - Free Report) is a China-based company that designs, develops, manufactures, and sells premium smart electric SUVs.
The Zacks Consensus Estimate for LI’s 2023 sales and earnings implies year-over-year growth of 131% and 2,400%, respectively. The consensus mark for 2024 sales and profit implies a year-over-year growth of 49.24% and 1,332%, respectively. The stock currently flaunts a Zacks Rank #1.
Wabash National Corporation (WNC - Free Report) designs, manufactures, and services products such as dry freight and refrigerated trailers, tank trailers, dry and refrigerated truck bodies, trailer aerodynamic solutions, and much more.
The Zacks Consensus Estimate for WNC’s 2023 sales earnings implies year-over-year growth of 12% and 90.7%. The company surpassed the earnings estimates in three out of four trailing quarters and missed once, the average surprise being 43.8%. The stock currently flaunts a Zacks Rank #1.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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Stellantis' (STLA) EV Vision to be Powered by SiliconAuto
As the world embraces electric vehicles (EVs) on a grand scale, the demand for advanced semiconductors in the auto industry has skyrocketed. These tiny but vital components are the backbone of computer-controlled features and modules, enabling the seamless integration of cutting-edge technology in vehicles.
Recognizing the increasing importance of semiconductors in the automotive sector, Italian-American auto manufacturer Stellantis (STLA - Free Report) has teamed up with Hon Hai Technology Group ("Foxconn") to establish SiliconAuto, a 50/50 joint venture. This collaboration aims to design and distribute a range of state-of-the-art semiconductors, catering to the evolving needs of the automotive industry, including Stellantis, starting in 2026.
SiliconAuto to Turbocharge Stellantis' EV Push
SiliconAuto is an exciting new endeavor resulting from the strategic partnership between Stellantis and Foxconn. Drawing upon Foxconn's expertise and vast experience in the ICT industry and Stellantis' comprehensive understanding of global mobility requirements, SiliconAuto is poised to revolutionize the semiconductor landscape for the automotive sector. The joint venture will offer an auto industry-centric source of semiconductors, focusing on computer-controlled features and modules, with particular emphasis on EVs.
By tailoring chips specifically for the new generation of automotive vehicle platforms, Netherlands-based SiliconAuto will provide Stellantis and other customers with a reliable supply of cutting-edge semiconductors. Among the notable products is STLA Brain, Stellantis' innovative electrical/electronic and software architecture that boasts full over-the-air updating capabilities. This technology ensures that Stellantis vehicles remain at the forefront of innovation, delivering exceptional capabilities long after they roll off the assembly line.
By joining forces with Foxconn in the SiliconAuto joint venture, Stellantis secures a competitive advantage in this transformative market. With access to a dedicated supply of state-of-the-art semiconductors, the automaker can accelerate the development and production of next-generation EVs, ultimately contributing to the mass adoption of electric mobility and the realization of a cleaner, greener future.
Stellantis' Electric Dreams
Stellantis’ ambitious Dare Forward 2030 strategy aims for a complete transformation of its vehicle lineup. The company aims to attain a significant milestone by capturing 100% of the passenger car BEV sales mix in Europe and 50% of the sales mix for passenger cars and light-duty trucks in the United States. By 2030, Stellantis aims to have 75 models in its BEV lineup and achieve an annual sales of five million BEVs worldwide.
It plans to invest a total of EUR 30 billion in electrification technology by mid-decade to provide best-in-class BEVs to its customers. The investment will help the automotive manufacturer slash its carbon footprint by half by 2030 from 2021 and achieve carbon neutrality by 2038.
If Stellantis succeeds in achieving its sales target as outlined in the Dare Forward plan, it has a higher possibility of doubling its revenues by 2030 compared to the start of the decade, maintaining double-digit adjusted operating margins throughout the decade and becoming number one in providing exceptional products and services in every market by 2030. The company currently carries a Zacks Rank #2 (Buy).
Top-Ranked Auto Stocks
Allison Transmission (ALSN - Free Report) is a manufacturer of fully-automatic transmissions for medium and heavy-duty commercial and heavy-tactical U.S. defense vehicles.
The Zacks Consensus Estimate for ALSN’s 2023 sales and earnings implies year-over-year growth of 7.5% and 19.5%, respectively. The company surpassed earnings estimates in three out of four trailing quarters and missed once, the average surprise being 12.8%. The stock currently flaunts a Zacks Rank #1 (Strong Buy).
Li Auto (LI - Free Report) is a China-based company that designs, develops, manufactures, and sells premium smart electric SUVs.
The Zacks Consensus Estimate for LI’s 2023 sales and earnings implies year-over-year growth of 131% and 2,400%, respectively. The consensus mark for 2024 sales and profit implies a year-over-year growth of 49.24% and 1,332%, respectively. The stock currently flaunts a Zacks Rank #1.
Wabash National Corporation (WNC - Free Report) designs, manufactures, and services products such as dry freight and refrigerated trailers, tank trailers, dry and refrigerated truck bodies, trailer aerodynamic solutions, and much more.
The Zacks Consensus Estimate for WNC’s 2023 sales earnings implies year-over-year growth of 12% and 90.7%. The company surpassed the earnings estimates in three out of four trailing quarters and missed once, the average surprise being 43.8%. The stock currently flaunts a Zacks Rank #1.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.