Geely's EV Exports Hit Choppy Waters: Red Sea Attacks Reportedly Threatens To Drive Up Costs And Delivery Delays
Portfolio Pulse from Shivani Kumaresan
Geely Automobile Holding Ltd's EV exports face potential delays and cost increases due to hostilities in the Red Sea, prompting shippers to reroute around the Cape of Good Hope instead of the Suez Canal. This could lead to quintupled shipping costs and a vessel shortage. China's vehicle exports to Europe have surged, causing EU regulatory concerns. Stellantis N.V. is monitoring the situation to adapt its strategy.
December 22, 2023 | 1:09 pm
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NEUTRAL IMPACT
Stellantis N.V. is closely monitoring the Red Sea situation and is prepared to adapt its shipping strategy, which may mitigate potential negative impacts.
Stellantis has not yet indicated any direct impact on its operations, but its proactive monitoring and readiness to adapt suggest a neutral to slightly positive outlook as they may be able to manage the situation effectively, preventing significant disruptions.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEGATIVE IMPACT
Geely's EV exports may face increased costs and delays due to rerouting around the Red Sea, potentially impacting revenue and profitability.
The increased shipping costs and potential delays due to rerouting are likely to negatively impact Geely's margins and export efficiency, which could lead to a negative perception among investors and a potential decrease in stock price in the short term.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80