Stellantis CEO compares margins with Tesla, GM ahead of first EV launches in the US
Jeep and Ram owner, Stellantis posted its first-half results Wednesday, showing a 24% rise in global EV sales. Ahead of its North American EV offensive, Stellantis CEO Carlos Tavares said the automaker’s margins were better than that of Tesla and General Motors.
Stellantis CEO calls out Tesla, GM over margins
Stellantis posted a record performance in the first half of 2023 with revenue, adjusted operating income, and net profit all up over last year.
Revenue rose 12% YOY to €98.4 billion ($109B), while net profit came in at €10.9 billion ($12B). Operating income, which many look at to determine profitability, was 14.1%.
Tavares told reporters, following the results, that Tesla is “entering my world the world of tight pricing, cost competitiveness, and the operational issues that a big company like ours may face,” according to Reuters.
Stellantis’s leader pointed out how Tesla’s “profitability moved from more than 17% in the first half of 2022 to 10.5% in the first half of 2023.”
As expected, Tesla’s operating margin fell in the second quarter due primarily to the price cuts throughout the first half of the year, in addition to costs associated with ramping 4680 cell production and increased expenses driven by the Cybertruck, AI, and other projects.
The EV leader’s operating margin has now fallen for three straight quarters, from a peak of 17.2% in Q3 2022 to 9.6% in the most recent quarter, which is still strong compared to the industry average.
Tavares claimed all automakers, including Tesla, would face competition from Chinese EV makers in their home markets. He said:
If we are racing for the bottom in terms of facing the Chinese with price cuts, Tesla will have problems with that strategy before we do, because we are more profitable than Tesla.
Tesla was not the only one, Tavares called out. He also mentioned General Motors, which posted margins of 8.3%.
Stellantis advances EV offensive to the US
Meanwhile, while Tesla continues setting new EV delivery records each quarter, Stellantis has yet to release its first all-electric car in the US.
Despite the success in the EU, the automaker’s first EVs will arrive in North America in the second half of the year, including the RAM ProMaster electric van and a New Fiat 500 EV.
Stellantis says the “BEV offensive” in North America will expand next year with eight new EV models. These include the Dodge Charge Daytona, Jeep Wagoneer S and Recon, and RAM 1500 REV electric pickup.
Tavares commented on the first-half results, saying:
Our outstanding performance in the first half of this year supports our long-term sustainability and our ability to achieve the bold ambitions of our Dare Forward 2030 plan.
Stellantis sold roughly 169,000 electric cars globally during the first half of the year, up 24% YOY, with several new products on the market.
The company says it now ranks third in overall EV sales and number one in commercial EV sales in the EU30.
Stellantis also recently revealed its STLA medium platform, which will be used to underpin future Jeep and Chrysler EVs featuring up to 435 miles (700km) of range with a performance pack.
Electrek’s Take
Despite Stellantis posting a higher margin in the first half of the year than Tesla, the company has a lot of work to do as it aims to reach 100% EV sales in Europe and 50% in the US by 2030.
As other automakers have shown, transitioning factories can be a major hurdle, with costly downtime and other expenses.
The US is Stellantis’s largest revenue driver, where it makes the most money. Tavares has previously mentioned he would likely need to expand its manufacturing footprint in the US and potentially even more in its domestic market.
This is not to mention the investments that will go into securing the EV supply chain to enable it to hit its targets, including batteries and software. All of this comes as EV makers from China continue expanding into key auto markets with low-priced, unique electric models.
For example, yesterday, China’s Geely Group revealed its first Radar R6 electric pickup trucks, which rolled off the assembly line for international markets. The Radar R6 starts at RMB 178,800 (roughly $25K) in China.
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JackRabbit, the maker of pint-sized electric microbikes, is back with a new product designed to quickly recharge their batteries from pure, uncut photons mainlined into an e-bike directly from the sun. In true independent charging form, the Solar Charging Kit from JackRabbit keeps riders rolling even when there’s not a convenient AC outlet in sight.
Unveiled this week, the Solar Charging Kit consists of a single folding solar panel and a tiny voltage converter that is configured to output 42.0V, which is the exact voltage required by JackRabbit’s little e-bike batteries. There’s also an added USB-A and a USB-C charging port for powering other devices in addition to charging JackRabbit batteries.
“This Solar Charging Kit plugs directly into your bike,” explained the company, “letting you recharge without needing an outlet, but with a speed comparable to the charger that comes with the OG/OG2 (42V, 2A).”
That would mean the panel outputs around 80W of solar power, which the company says can recharge its batteries in just three hours. That fairly quick recharging speed is helped by the fact that JackRabbit’s batteries are a mere 151 Wh, or around a third of the size of most e-bike batteries.
If that sounds small, then you’re right – it is. But JackRabbit is all about going micro, offering barely 25 lb rideables that are easy to store and bring on adventures, even when they aren’t actually being ridden.
With small batteries that fit under the 160Wh limit for many airlines in the US, the batteries can be quickly charged and taken to the widest number of locations. And for riders that want to go further than a single 10-mile (16-km) battery will allow, extra batteries are small enough to fit a pants pocket. The company also offers much larger Rangebuster batteries, though they won’t pass by TSA and make it onto an airplane in your personal item.
It sounds like the Solar Chargking Kit should be able to charge up JackRabbit’s large RangeBuster batteries, though likely in more than three hours.
The $349 Solar Charging Kit is a bit pricier than building something similar yourself, but it’s also safer and more convenient than hacking together your own battery charger since it’s designed to work with JackRabbit’s batteries right out of the box.
Technically it’s only inteded for JackRabbit’s micro e-bikes (themselves technically seated scooters, even if they look and feel more like a typical bike), but it’d probably work for just about any 36V e-bike that requires 42.0V to charge.
This isn’t the first time we’ve seen solar charging kits for electric bikes, and it’s a trend that is certainly appreciated by outdoors and camping enthusiasts, festival goers, or anyone who finds themself and their bike spending extended periods in the great, sunny outdoors.
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Solar generated 11% of EU electricity in 2024, overtaking coal which fell below 10% for the first time, according to the European Electricity Review published today by think tank Ember.
EU gas generation declined for the fifth year in a row, and total fossil generation fell to a historic low.
“Fossil fuels are losing their grip on EU energy,” said Dr Chris Rosslowe, senior analyst and lead author of the report. “At the start of the European Green Deal in 2019, few thought the EU’s energy transition could be where it is today; wind and solar are pushing coal to the margins and forcing gas into structural decline.”
The European Electricity Review published today by global energy think tank Ember provides the first comprehensive overview of the EU power system in 2024. It analyzes full-year electricity generation and demand data for 2024 in all EU-27 countries to understand the region’s progress in transitioning from fossil fuels to clean electricity.
Wind and solar continue their meteoric rise in the EU
The EU power sector is undergoing a deep transformation spurred on by the European Green Deal. Solar generation (11%) overtook coal (10%) for the first time in 2024, as wind (17%) generated more electricity than gas (16%) for the second year in a row.
Strong solar growth, combined with a recovery of hydropower, pushed the share of renewables to nearly half of EU power generation (47%). Fossil fuels generated 29% of the EU’s electricity in 2024. In 2019, before the Green Deal, fossil fuels provided 39% of EU electricity, while renewables provided 34%.
Solar is growing in every EU country and more than half now have either no coal power or a share below 5% in their power mix. Coal has fallen from being the EU’s third-largest power source in 2019 to the sixth-largest in 2024, bringing the end into sight for the dirtiest fossil fuel. EU gas generation also declined for the fifth year in a row (-6%) despite a very small rebound in power demand (+1%).
The EU is reaping the benefits of reduced fossil fuel dependency
The surge in wind and solar generation has reduced the EU’s reliance on imported fossil fuels and its exposure to volatile prices since the energy crisis. Ember’s analysis found that without new wind and solar capacity added over the last five years, the EU would have imported an additional 92 billion cubic meters of fossil gas and 55 million tonnes of coal, costing €59 billion.
“While the EU’s electricity transition has moved faster than anyone expected in the last five years, further progress cannot be taken for granted,” continued Rosslowe. “Delivery needs to be accelerated particularly in the wind sector, which has faced unique challenges and a widening delivery gap. Between now and 2030, annual wind additions need to more than double compared to 2024 levels. However, the achievements of the past five years should instil confidence that, with continued drive and commitment, challenges can be overcome and a more secure energy future be achieved.”
Walburga Hemetsberger, CEO of SolarPower Europe said: “This milestone is about more than just climate action; it is a cornerstone of European energy security and industrial competitiveness. Renewables are steadily pushing fossil fuels to the margins, with solar leading the way. We now need more flexibility to kick-in, making sure the energy system is adapting to new realities: more storage and more smart electrification in heating, transport and industries.”
Read more: China installed a record capacity of solar and wind in 2024 – in numbers
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