“Revamping Europe”: Stellantis (STLA) in Talks with China’s Xiaomi and XPeng to Boost Operations

FomoAnxiety · 2026-03-12T18:03:12+00:00

Stellantis is seeking partnerships with Chinese EV makers like Xiaomi and XPeng to cut costs and enhance its European operations amidst financial pressures. Discussions include technology sharing and potential investments, as the company faces challenges in the EV market.

FomoAnxiety

2026-03-12 18:03:12

Abstract generation in progress

Stellantis STLA -0.29% ▼ is exploring deeper partnerships with Chinese electric vehicle makers, such as Xiaomi XIACF +3.22% ▲ and XPeng XPEV +4.67% ▲ , as it looks for ways to cut costs and strengthen its European operations. The talks come as the automaker faces rising financial pressure and competition from both European rivals and fast‑growing Chinese EV companies.

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Talks Center on Technology and Potential Investments

Stellantis is in active discussions with several Chinese automakers to explore technology sharing, platform integration, and even potential investments in its European operations and stakes in brands such as Maserati.

The talks include using Chinese-developed EV platforms, batteries, and powertrains for Stellantis brands such as Fiat, Opel, and Peugeot, and potential investments from Chinese automakers into STLA’s struggling European business units.

The companies are also exploring access to Stellantis’ European manufacturing capacity, which Chinese brands could use to expand in the region.

Company Under Pressure

The talks come at a challenging moment for Stellantis. The automaker recently announced €22.2 billion in charges and writedowns, much of it tied to scaling back its EV ambitions. The reversal wiped out a quarter of the company’s market value in a single day.

CEO Antonio Filosa, who took over last year, has been trying to stabilize operations after aggressive cost cuts hurt vehicle quality and drove customers away. Also, the uneven pace of the global EV transition, slower in parts of Europe and the U.S., has added further strain.

Looking ahead, Stellantis is expected to outline more details about its strategy at its May 21 investor day in the U.S.

Is STLA Stock a Buy?

Wall Street has a Moderate Buy consensus rating on Stellantis stock based on seven Buy, 10 Hold, and one Sell recommendation. The average STLA stock price target of $9.83 indicates 43.09% upside potential.

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