Stellantis CEO says EVs need to be affordable but profitable

Stellantis CEO Carlos Tavares, the leader behind brands including Jeep, Ram, Dodge, Fiat, and several others, has a warning for other automakers. Tavares said EVs must be affordable but profitable, or they will be “in trouble very, very soon.”

To attract middle-class shoppers, lower EV prices are needed. “You can only solve this if you reduce cost,” Tavares said at the Goldman Sach conference, adding, “and this is something we are reasonably good at.”

Tavares pointed to cheaper EVs, including the upcoming Citroen e-C3, starting at around $25,000 (23,300 euros). Stellantis said the new Citroen EV is the “first European affordable electric car.”

The new EV rides on a version of Stellantis‘ “Smart Car” platform, used in India to enable low prices.

According to Automotive News, Tavares said Stellantis’ electrified vehicles are “in the black, both in the US and Europe.” The automaker’s leader said EV margins are nearing those of ICE vehicles.

In Europe, Tavares said the brand is “fighting head-on” with Tesla for EV sales in Europe. Natalie Knight, Stellantis CFO, said the automaker overtook Tesla for second in European EV sales.

Tavares said the recent deal with Leapmotor will help them deliver profitable EVs in Europe. He said that by working with Leapmotor, Stellantis is “starting with a sourcing point which is 30 percent more cost competitive than anything you can figure out in the Western world.”

The brand’s leader explained, “The guys who are not able to make money with EVs are going to be in trouble very, very soon.”

Stellantis is closing the gap faster in Europe “because we started sooner,” Tavares said. The brand will kick off its EV offensive with several new electric models coming from Ram, Jeep, and Fiat.

Stellantis to launch affordable EVs (and pricier models)

Under its Dare Forward 2030 plant, the company aims for 100% of European sales to be electric by 2030. In the US, Stellantis expects about 50% EV sales share.

Fiat will kick things with the new Fiat 500e early next year. The new electric car will be one of the most affordable EVs on the market, with starting prices under $33,000. It will also be the lightest passenger EV on the market with up to 149 miles range.

The electric model is already a top-selling EV in Europe as Stellantis looks to make its mark in the US.

Ram’s first electric pickup, the Ram 1500 REV, will begin rolling out in late 2024. It will compete with Ford’s F-150 Lightning, Rivian R1T, and recently launched Tesla Cybertruck. Ram is also launching its ProMaster electric commercial van.

The company has yet to reveal prices for the upcoming EV truck, but it’s expected to be well over the $61K Tesla Cybertruck starting price.

Jeep, another Stellantis brand, is launching its first EVs in the US next year. The Jeep Recon and Wagoneer are poised to lead the brand into a new era.

The Jeep Recon is inspired by the brand’s legendary Wrangler as a “rugged and fully capable electric SUV.” The Recon includes options like removable doors and windows to give the true Wrangler feel.

Jeep’s next EV will be an electric version of its premium Wagoneer model. The Jeep Wagoneer S features long-range capabilities with roughly 600 hp. According to Jeep, the premium EV can travel from NYC to Toronto on a full battery (~490 mi, according to Google Maps).