Undoubtedly, transportation market watchers have been keeping a close eye on Tesla (NASDAQ:TSLA) these days and issues at its Shanghai plant. However, there’s another plant to watch now: Stellantis’ (NYSE:STLA) Belvidere Assembly plant in Illinois. Stellantis is down 2.7% in after-hours trading after word emerged that the company called a halt to operations entirely at that plant.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
The halt won’t begin immediately, reports note; the factory won’t go idle until February. The company cites growing costs connected with the production of electric vehicles as the reason.
The move enraged the United Auto Workers, who promptly released statements via vice-president Cindy Estrada. Estrada noted that the UAW was “deeply angered” by the move and noted that Stellantis already received substantial government support to make the move to clean energy.
Indeed, Stellantis doesn’t seem to have trouble spending money elsewhere. Even as the Belvidere plant goes dark in February, Stellantis offered French workers an extra 5.3% pay raise. Unions there, meanwhile, were calling for a hike between 7.3% and 8.5%.
Despite the troubles currently facing Stellantis, analyst consensus rates it a Strong Buy. The current average price target of $22.68 per share implies over 57% upside potential.
