Due to its importance and diverse portfolio of brands (such as Peugeot, Citroen and Alfa Romeo), Stellantis continues to attract the interest of analysts and investors. Market analysts are monitoring Stellantis' capacity to maintain its position as the global automotive markets undergo significant change. This includes themes such as electrification, technological advancements and evolving consumer preferences.

With a wide geographical presence in North America, Europe and other key markets, Stellantis has a strong balance sheet. By introducing new electric vehicle models and forming strategic alliances in battery technology, it has carried out ambitious electrification initiatives. Continuing cost-synergy realisations from the 2021 merger between Groupe PSA and Fiat Chrysler Automobiles and strategic alliances with tech firms have improved its long-term prospects.

Figure 1 shows sharp increases of Stellantis' share price (STLAM.PA) reaching a peak in March 2024, an increase of 56% from the base at 100% in January 2022. The company's EV acceleration strategy, impressive quarterly results and investor expectations of steady growth were the main drivers of this rally. The stock did, however, go into a steep decline after reaching its peak, dropping to about 60% by the end of March 2025. This drop from its peak was due to drop in profits reported in 2024.

The more stable upward trajectory of the Euro Stoxx 50 index (STOXX50E) which went from 100% to about 128% in March 2025, shows its lower volatility and sentiment in the wider European stock market. In the meantime, Volkswagen (VOWG.DE) share price has consistently drifted downwards. By November 2024, it had dropped by 69% from January 2022. Investors' ongoing concerns about Volkswagen's competitive positioning, regulatory pressures and strategic direction, particularly in the EV market, are apparent in these significant falls.

Stellantis has been on a much more volatile path than Volkswagen but there may be room for recovery, particularly if the business meets its long-term EV roadmap and cost-cutting objectives.

Investors in structured products can take advantage of this volatility by using tools like credit-linked or reverse convertible notes to increase yield opportunities. Stellantis is therefore an appealing underlying for investors with a moderately bullish or opportunistic outlook.

Stellantis-linked structured product analysis

In January 2023, Morgan Stanley and Co. International offered a growth-oriented autocall structured product in France, linked to shares of Stellantis, (source: SRP - SRP ID 40722661). If specific requirements are fulfilled on the semi-annual observation dates, the product offers early termination with an increasing growth payout schedule. It also has capital protection with a European barrier of 50% over a maximum ten-year term. Investors receive a 100% capital return even in the event of some underperformance if the underlying asset finishes above the barrier at maturity. Investors would be exposed to the downside in Stellantis' share price below this threshold. The product autocalled on its first opportunity of 27th January 2024, paying a return of 26% after one year, which is a very strong performance.

Many examples of live structured products linked to Stellantis in European markets issued between July 2024 and February 2025.

There are three different products from Switzerland. The first two are equity linked, a 200% participation Outperformance Certificate (capped at 116.5% with no downside barrier) (SRP ID 50374020) and a short-term (nine month) basket product on Ferrari and Stellantis with 5% p.a. Kick-In payoff (SRP ID 50665017). The third is a Credit Linked Note paying 2.25% (SRP ID 49985352) and provides increased yield by assuming the direct credit risk of Stellantis since coupons and principal are reduced if there is an ISDA defined credit event during the product life. The coupon offered appears competitive, given that the CDS for Stellantis is around 200bps (2%) and CHF interest rates are 0.3%. If there is no credit event (e.g., default or restructuring) full principal and coupons are paid.

In France, Morgan Stanley offered a five-year growth autocall product (SRP ID 50502594) and Intesa Sanpaolo issued a three-year barrier reverse convertible with a 6% potential return in Italy (SRP ID 50372658).

From growth-oriented autocalls to income-focused reverse convertibles, distributors can customise Stellantis exposure to suit the preferences of various investor types. These products have different risk profiles, maturities and potential returns across several European markets.

With a dramatic share price trajectory that outperformed rivals like Volkswagen and showed more dynamic movement than broader market indices, Stellantis represents a compelling but volatile investment opportunity in the changing automotive landscape.

Stellantis can be considered as an attractive underlying asset for investors seeking opportunities in the volatile but potentially profitable automotive industry as it continues to transform through electrification and technological advancement because of its strong financial base, significant EV strategy and ongoing merger synergies.

These factors are reflected in the wide variety of structured products linked to Stellantis in European markets giving investors plenty of choice and opportunities.