Stellantis’ Milan-listed shares dropped by approximately 1% on Friday after CEO Carlos Tavares confirmed his retirement by 2026. The announcement, which also revealed significant changes in senior management, caused a similar 1% decline in the company’s Paris-listed shares.
This news adds to an already challenging year for Stellantis on the stock market, with its Milan-listed shares down 43% year-to-date. Investors are likely uneasy about the upcoming leadership transition, as Tavares has been a crucial figure in the company’s success since the merger of Fiat Chrysler Automobiles and PSA Group in 2021.
During his tenure, Tavares streamlined operations and spearheaded the company’s shift toward electrification and new mobility solutions. His retirement leaves Stellantis navigating the rapidly evolving automotive landscape without his guidance.
Although specific details weren’t provided, the announcement hinted at significant changes in the senior management team, aiming to ensure a smooth leadership transition. This comes as Stellantis looks to advance its long-term strategy, focusing on electric vehicles and sustainable transportation.
Tavares still has two years remaining as CEO, but investors are already concerned about his departure. As the company faces increased competition in the electrification and digitalisation of the automotive industry, leadership changes become even more critical.
