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Stellantis N.V. (STLA) Confronts Costly EV Challenges and Credit Risks

Stellantis N.V. (NYSE:STLA) is one of the best foreign stocks to buy right now. On February 10, Bloomberg reported that Stellantis N.V. (NYSE:STLA) is exploring an exit from its US battery joint venture with South Korea’s Samsung SDI Co. This partnership was formed to build electric vehicle (EV) batteries under the StarPlus Energy venture. Discussions between the two companies about the future of the joint venture are ongoing, the report said.

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According to Bloomberg, Stellantis has not made a final decision on exiting the battery venture. It added that Stellantis may pursue options such as selling its stake to a third party. However, analysts and insiders revealed that an exit could be costly and take considerable time to complete, as per the report.

In a different update, on February 10, Reuters reported that credit rating agencies S&P Global and Moody’s downgraded Stellantis’s long-term credit ratings to the lowest level that still qualifies as investment grade.

S&P Global lowered Stellantis’ long-term issuer credit rating from BBB to BBB- and assigned a negative outlook, said Reuters. For Moody’s Stellantis’s long-term rating is now Baa3 down from Baa2, although the agency retained the stable outlook. Both agencies’ ratings are now one notch above “junk” or non-investment-grade status, according to the report.

Reuters stated that the agencies cited weaker-than-expected profitability and cash flow forecasts for 2025 as key reasons for the downgrades. For context, Stellantis had recently reported significant EV-related losses and write-downs, including a multibillion-euro charge tied to revising its EV strategy.

Stellantis N.V. (NYSE:STLA) is a Dutch company formed through the merger of Fiat Chrysler Automobiles and Groupe PSA. Its portfolio includes iconic brands such as Jeep, Ram, Peugeot, Citroën, Fiat, and Maserati. The company’s operations span Europe, North America, and other global markets.

While we acknowledge the potential of Stellantis N.V. (NYSE:STLA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than STLA and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 11 Best AI Penny Stocks to Buy Right Now and 13 Best Affordable Tech Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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