Auto Industry Braces for Possible New Chip Shortage Crisis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 17 2025
0mins
Source: WSJ
Supply Chain Disruption: The auto industry faces a significant supply-chain disruption due to Nexperia, a Dutch semiconductor manufacturer, halting shipments of essential parts used in various automotive applications.
Government Intervention: This disruption follows the Dutch government's takeover of Nexperia from its Chinese owner, with the company citing a "force majeure" event to excuse its contractual obligations amid the extraordinary situation.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy STLA?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on STLA
Wall Street analysts forecast STLA stock price to rise
14 Analyst Rating
7 Buy
7 Hold
0 Sell
Moderate Buy
Current: 7.900
Low
9.33
Averages
11.81
High
15.15
Current: 7.900
Low
9.33
Averages
11.81
High
15.15
About STLA
Stellantis N.V., formerly Fiat Chrysler Automobiles N.V., is a holding Company based in the Netherlands and operates as an automaker and a mobility provider. The Company is engaged in designing, engineering, manufacturing, distributing and selling vehicles, components and production systems. The Company has industrial operations in more than 30 countries and sells its vehicles directly or through distributors and dealers in more than 130 countries. The Company designs, manufactures, distributes and sells vehicles for the mass-market under the Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Lancia and Ram brands. In addition, the Company designs, manufactures, distributes and sells luxury vehicles under the Maserati brand. The Company's brand portfolio also includes Peugeot, Citroen, DS Automobiles, Opel and Vauxhall. It offers a wide variety of vehicle choices from luxury and mainstream passenger vehicles to pickup trucks, sport utility vehicle (SUVs).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Stellantis to Announce Full Year 2025 Results on February 26
- Earnings Release Schedule: Stellantis has announced that it will release its Full Year 2025 financial results on February 26, 2026, highlighting the company's commitment to transparency and investor communication.
- Live Webcast Arrangement: The earnings announcement will be accompanied by a live audio webcast and conference call scheduled for 2:00 p.m. CET (8:00 a.m. EST), providing real-time information to global investors.
- Material Release Timing: Related press releases and presentation materials are expected to be posted at 8:00 a.m. CET on the announcement day, ensuring investors have timely access to critical information for decision-making.
- Replay Availability: For those unable to attend the live session, Stellantis will offer a recorded replay after the event, further enhancing information accessibility and transparency for stakeholders.
See More
Tesla's $20 Billion Investment Reshapes Transportation Market
- Surge in Capital Expenditure: Tesla plans to invest over $20 billion in capital spending by 2026, more than double last year's expenditure, highlighting its ambitious vision for the electric vehicle market, especially as competitors scale back their investments.
- Diversified Factory Investments: Among the six new factories, three are dedicated to electric vehicle production, including a lithium refinery and a low-cost lithium iron phosphate battery factory, directly supporting EV growth and strengthening Tesla's market position.
- Autonomous Driving Vision: CEO Elon Musk clearly stated in the recent earnings call that only 1% to 5% of miles driven will be by humans in the future, indicating Tesla's leadership in autonomous driving, with expectations that Cybercab production will surpass all other models combined.
- Significant Market Potential: The Cybercab is expected to cost under $30,000 and have a significantly lower cost per mile than traditional taxis; if regulatory approval is achieved, Tesla's robotaxi could present a compelling market opportunity, further solidifying its leadership in the EV sector.
See More
Automakers Slash EV Investments Amid $65B Losses
- Severe Industry Losses: The global automotive industry has incurred at least $65 billion in losses over the past year due to significant cutbacks in electric vehicle investments, with executives warning of more pain ahead, indicating a sharp decline in market confidence towards EVs.
- Stellantis' Major Shift: Stellantis recorded a $26 billion write-off this month to scrap fully electric models and revive its popular 5.7-liter 'Hemi' V8 engine, resulting in a market value drop of approximately $6 billion, reflecting the urgency of its strategic pivot.
- Ford's EV Setbacks: Ford disclosed a $19.5 billion writedown after canceling its electric F-150 pickup truck, highlighting significant setbacks in its EV strategy and further exacerbating uncertainty in the industry.
- Bleak Market Outlook: Industry executives now expect EVs to account for just 5% of the U.S. new vehicle market—roughly half the current level—demonstrating the substantial impact of policy changes and inadequate infrastructure on the development of electric vehicles.
See More
BlackRock Acquires 8.1% Stake in Archer Aviation
- Investor Confidence Boost: BlackRock's acquisition of an 8.1% stake in Archer Aviation for $366 million, despite the company missing production targets since its 2021 debut and delivering only one test aircraft, may indicate confidence in its future potential.
- Market Outlook: Archer's Midnight eVTOL is expected to replace helicopters for short-range flights, with capabilities of flying 100 miles on a single charge and reaching speeds of 150 mph; if it secures FAA approval and scales production, analysts project revenues could reach $32 million by 2026.
- Backlog Situation: As of the end of 2025, Archer has a non-committal backlog of $6 billion with approximately 1,200 aircraft orders, showing strong market demand for eVTOLs, although collaboration with major investor Stellantis is progressing slower than anticipated.
- Industry Competition and Challenges: While Archer has potential in the eVTOL market, its market cap of $4.96 billion reflects a valuation of 155 times this year's sales, and it has yet to break even, facing risks of production issues and delayed approvals in the future.
See More
Canada Eases Import Restrictions on Chinese EVs
- Policy Shift: The Canadian government has decided to allow the import of 49,000 Chinese electric vehicles, reducing tariffs from 106% to 6.1%, which will enable these vehicles to represent about 3% of Canada's new car market and approximately 20% of its battery EV and plug-in hybrid market, aiming to reduce reliance on the U.S. and revitalize domestic manufacturing.
- China-Canada Cooperation: In exchange for tariff reductions, China has agreed to lower tariffs on Canadian canola oil, a move that not only enhances Canadian agricultural exports but may also foster joint investments and collaborations in the EV sector, driving manufacturing revival.
- Market Outlook: With expectations for significant growth in the Canadian EV market by 2030, the relatively small import volume of 49,000 vehicles could have a substantial impact if these are primarily affordable models, potentially increasing consumer acceptance of electric vehicles.
- Manufacturing Challenges: Despite having resource advantages, Canada faces challenges in attracting manufacturing investments compared to Mexico and the U.S., where lower manufacturing costs and larger markets prevail, and without further action, Canadian assembly plants may continue to decline.
See More
Concerns About AI Are Causing Stock Market Jitters: Here's Why It's an Overreaction.
- Market Disruption: Concerns about artificial intelligence are causing significant disruptions in various market sectors, particularly affecting trucking and transport stocks.
- Wider Nervousness: The ongoing fears reflect a broader anxiety regarding inflated valuations across the market.
See More
Stellantis to Announce Full Year 2025 Results on February 26
- Earnings Release Schedule: Stellantis has announced that it will release its Full Year 2025 financial results on February 26, 2026, highlighting the company's commitment to transparency and investor communication.
- Live Webcast Arrangement: The earnings announcement will be accompanied by a live audio webcast and conference call scheduled for 2:00 p.m. CET (8:00 a.m. EST), providing real-time information to global investors.
- Material Release Timing: Related press releases and presentation materials are expected to be posted at 8:00 a.m. CET on the announcement day, ensuring investors have timely access to critical information for decision-making.
- Replay Availability: For those unable to attend the live session, Stellantis will offer a recorded replay after the event, further enhancing information accessibility and transparency for stakeholders.
See More
Tesla's $20 Billion Investment Reshapes Transportation Market
- Surge in Capital Expenditure: Tesla plans to invest over $20 billion in capital spending by 2026, more than double last year's expenditure, highlighting its ambitious vision for the electric vehicle market, especially as competitors scale back their investments.
- Diversified Factory Investments: Among the six new factories, three are dedicated to electric vehicle production, including a lithium refinery and a low-cost lithium iron phosphate battery factory, directly supporting EV growth and strengthening Tesla's market position.
- Autonomous Driving Vision: CEO Elon Musk clearly stated in the recent earnings call that only 1% to 5% of miles driven will be by humans in the future, indicating Tesla's leadership in autonomous driving, with expectations that Cybercab production will surpass all other models combined.
- Significant Market Potential: The Cybercab is expected to cost under $30,000 and have a significantly lower cost per mile than traditional taxis; if regulatory approval is achieved, Tesla's robotaxi could present a compelling market opportunity, further solidifying its leadership in the EV sector.
See More
Automakers Slash EV Investments Amid $65B Losses
- Severe Industry Losses: The global automotive industry has incurred at least $65 billion in losses over the past year due to significant cutbacks in electric vehicle investments, with executives warning of more pain ahead, indicating a sharp decline in market confidence towards EVs.
- Stellantis' Major Shift: Stellantis recorded a $26 billion write-off this month to scrap fully electric models and revive its popular 5.7-liter 'Hemi' V8 engine, resulting in a market value drop of approximately $6 billion, reflecting the urgency of its strategic pivot.
- Ford's EV Setbacks: Ford disclosed a $19.5 billion writedown after canceling its electric F-150 pickup truck, highlighting significant setbacks in its EV strategy and further exacerbating uncertainty in the industry.
- Bleak Market Outlook: Industry executives now expect EVs to account for just 5% of the U.S. new vehicle market—roughly half the current level—demonstrating the substantial impact of policy changes and inadequate infrastructure on the development of electric vehicles.
See More
BlackRock Acquires 8.1% Stake in Archer Aviation
- Investor Confidence Boost: BlackRock's acquisition of an 8.1% stake in Archer Aviation for $366 million, despite the company missing production targets since its 2021 debut and delivering only one test aircraft, may indicate confidence in its future potential.
- Market Outlook: Archer's Midnight eVTOL is expected to replace helicopters for short-range flights, with capabilities of flying 100 miles on a single charge and reaching speeds of 150 mph; if it secures FAA approval and scales production, analysts project revenues could reach $32 million by 2026.
- Backlog Situation: As of the end of 2025, Archer has a non-committal backlog of $6 billion with approximately 1,200 aircraft orders, showing strong market demand for eVTOLs, although collaboration with major investor Stellantis is progressing slower than anticipated.
- Industry Competition and Challenges: While Archer has potential in the eVTOL market, its market cap of $4.96 billion reflects a valuation of 155 times this year's sales, and it has yet to break even, facing risks of production issues and delayed approvals in the future.
See More
Canada Eases Import Restrictions on Chinese EVs
- Policy Shift: The Canadian government has decided to allow the import of 49,000 Chinese electric vehicles, reducing tariffs from 106% to 6.1%, which will enable these vehicles to represent about 3% of Canada's new car market and approximately 20% of its battery EV and plug-in hybrid market, aiming to reduce reliance on the U.S. and revitalize domestic manufacturing.
- China-Canada Cooperation: In exchange for tariff reductions, China has agreed to lower tariffs on Canadian canola oil, a move that not only enhances Canadian agricultural exports but may also foster joint investments and collaborations in the EV sector, driving manufacturing revival.
- Market Outlook: With expectations for significant growth in the Canadian EV market by 2030, the relatively small import volume of 49,000 vehicles could have a substantial impact if these are primarily affordable models, potentially increasing consumer acceptance of electric vehicles.
- Manufacturing Challenges: Despite having resource advantages, Canada faces challenges in attracting manufacturing investments compared to Mexico and the U.S., where lower manufacturing costs and larger markets prevail, and without further action, Canadian assembly plants may continue to decline.
See More
Concerns About AI Are Causing Stock Market Jitters: Here's Why It's an Overreaction.
- Market Disruption: Concerns about artificial intelligence are causing significant disruptions in various market sectors, particularly affecting trucking and transport stocks.
- Wider Nervousness: The ongoing fears reflect a broader anxiety regarding inflated valuations across the market.
See More
