A Fiat 500e produced by Stellantis|Mariordo|CC BY-SA 4.0
Stellantis CEO Carlos Tavares announced yesterday that the company has achieved profitability with electric vehicles (EVs), marking significant news for traditional automakers, who, in recent times, have been cutting back on producing EVs.
The automaker plans to continue EV production and sales in Europe and will introduce its first EV to the US market this year.
The Jeep and Ram maker reported record profits for the third consecutive year since the merger of Fiat Chrysler and PSA Group created the company in 2021.
Profits and EVs
Though demand for electric vehicles has soared in recent years, makers struggle with profitability. Even Tesla, the most profitable US automaker, was losing money until 2019.
Legacy automakers like Ford and GM have also faced challenges, with Ford reporting a $4.7 billion loss in EVs last year.
Luxury EV maker Lucid Motors recently slashed prices on its electric sedans in a bid to stimulate demand following disappointing 2023 sales. It has reduced the price of its cheapest EV by $8000.
The base model, Lucid Air Pure, will now start at $69,900, down from $77,400.