Stellantis' Leapmotor EV Venture Gains Chinese Approval: Report
Portfolio Pulse from Shivani Kumaresan
Stellantis N.V. (NYSE:STLA) has received approval from China's National Development and Reform Commission (NDRC) for a joint venture with Leapmotor to build and sell Leapmotor's electric vehicles outside China. This follows Stellantis' announcement in October 2023 of acquiring a 21% stake in Leapmotor for $1.6 billion, granting Stellantis exclusive rights for Leapmotor's products outside China. The approval comes amid heightened tensions between China and the European Union over EV subsidies.
March 06, 2024 | 4:49 pm
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Stellantis N.V. received Chinese regulatory approval for its joint venture with Leapmotor, enabling it to build and sell Leapmotor's EVs outside China. This follows a $1.6 billion investment for a 21% stake in Leapmotor.
The approval from China's NDRC for Stellantis' joint venture with Leapmotor is a significant step forward for Stellantis in the electric vehicle market. This strategic move not only expands Stellantis' EV portfolio but also opens up new global markets for Leapmotor's products. Given the positive market reaction with a 1.81% increase in STLA shares, this development is likely to have a favorable short-term impact on Stellantis' stock price.
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