Leading automotive manufacturing company Stellantis (NYSE:STLA) is acquiring a 33.3% stake in Symbio, a hydrogen fuel cell system maker. Symbio is a joint venture between France’s Faurecia and Michelin. The move is a strategic fit for STLA, which aims to bolster its leadership in hydrogen-powered vehicles.
In addition, it supports STLA’s strategy to become carbon net zero by 2038, while complementing its growing EV (Electric Vehicle) portfolio.
Symbio is scheduled to start production of hydrogen fuel cells in the second half of 2023. Further, it plans to ramp up production to 50,000 fuel cells per year by 2025.
Stellantis expects the deal to close by the third quarter of the current year.
As Stellantis is focusing on decarbonization, it registered a 22% increase in global battery EV sales in Q1. Further, the company’s net revenues came in at €47.2 billion, up 14% year-over-year due to higher shipments and strong net pricing.
Going forward, the company anticipates that the introduction of nine battery-powered EVs in 2023 will increase sales even further.
Is Stellantis a Good Stock to Buy Now?
With its growing portfolio of battery EVs and focus on hydrogen-powered vehicles, Stellantis is well-positioned to capitalize on decarbonization trends. Stellantis stock has received 10 Buys and two Holds for a Strong Buy consensus rating.
Further, analysts’ average price target of $23.23 implies an attractive 44.29% upside potential from the current levels.
