HSBC Downgrades Stellantis Over Recalls and Inventory Issues

By EC Assets · Published 3 July 2026

HSBC has downgraded Stellantis NV shares, revising its rating to "reduce" from "hold." The investment bank also lowered its target price for the automaker. This adjustment implies a potential 21.8% downside for Stellantis stock. Stellantis NV's shares declined in Paris trading following HSBC's announcement. The new target price set by HSBC is €4, a decrease from the previous €5.50. HSBC's analyst, Michael Tyndall, also downgraded Stellantis NV (STLA:IM) (NYSE: STLA) from Hold to Reduce. The firm cited rising recalls as a factor in its decision. HSBC cited inventory and quality issues in its downgrade of Stellantis. To address an inventory buildup in 2024, Stellantis reportedly reduced its U.S. prices by 500-600 basis points. The company also cut production by approximately 200,000 units. This article is intended for informational purposes only. It does not constitute investment advice.