Stellantis’ performance in 2024 offers food for thought not only for investors, but for anyone who closely follows the evolution of the automotive industry. Recently, CEO Carlos Tavares spoke of a “Darwinian situation” in reference to the challenges the group is facing, but what does this expression really mean? Is this an accurate description, or is reality much more complex than it appears?
2024: A Year of Challenges for Stellantis
Stellantis stock recorded a high in March 2024, but since then it has been a succession of difficulties and turbulence, leading to an overall loss of -56% of its value. The decline is attributable to a number of factors, including increased regulatory pressure on the automotive industry and difficulties keeping pace with the transition to electrification and new sustainable technologies. The company’s strategic choices are now under a magnifying glass, and Tavares finds himself answering for his decisions today, during a hearing in the Chamber of Deputies.
Tavares described this context as “Darwinian,” a term that evokes the idea of survival of the fittest. However, observing the performance of the stock and the internal crisis of the car manufacturer, the situation seems closer to an intricate Kafkaesque dilemma, where the challenges accumulate and the solutions do not appear immediate.
Reading the Market Through the Trendycator
In the face of these turbulences, investors who followed the indicator Trendycator they were able to avoid the worst. In February 2023, the Trendycator reported a buying opportunity on Stellantis stock, generating a gain of +50% until the end of April, at which point he specifically suggested exiting the stock, thus protecting investors’ capital. Since then, the Trendycator has remained in a defensive position, avoiding the subsequent collapse.
The CI Methodbased on a systematic and prudent approach, has been able to maintain constant gains over time, without being carried away by the euphoria or panic of the markets. This is exactly the type of approach that distinguishes our vision: protect capital first and foremost to build a sustainable return in the long term.
What we can learn from the Stellantis case
The Stellantis case offers us some fundamental lessons: in an uncertain market environment, characterized by technological and regulatory changes, it is crucial to have robust analysis tools and solid investment methodologies. The Trendycator and the CI Method they demonstrate that it is possible to navigate difficulties and obtain returns, as long as you know how to follow signals based on data and analysis rather than emotions.
The lesson is clear: it’s not about perfectly predicting the future of the market, but about knowing when it’s time to exit and protect your portfolio.
Conclusions
The Stellantis story is a warning to everyone: market volatility requires an informed approach, free of illusions and based on concrete data and reliable indicators such as the Trendycator. The difference between those who lose 56% with Buy&Hold and those who emerge with a 50% gain lies in the quality of the information and tools used.
Doing better than the market is impossible, we know it. However, when the market starts to tank, it is always preferable not to be among those who suffer the consequences.
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