Chrysler parent Stellantis made a significant announcement on Tuesday, showcasing their latest innovation in the world of electric vehicles – the Chrysler Halcyon concept vehicle. This remarkable car incorporates cutting-edge features such as a minimalist interior, advanced non-plug charging batteries, and autonomous-driving capabilities.
While the Halcyon’s innovation is truly awe-inspiring, it is important to highlight that not all of the technology is fully developed just yet. Stellantis is actively working on lithium-sulfur batteries that can provide a range of 40 miles with just one minute of charging. Moreover, they are exploring the possibility of charging the vehicle while driving or when parked without needing a plug, similar to how an iPhone charges on a wireless pad.
Stellantis is determined to integrate level 4 autonomous-driving technology into the Halcyon, which would allow the vehicle to handle most of the driving tasks with minimal human intervention. Although such advanced autonomous systems are currently rare and expensive, it is worth noting that General Motors Cruise robotaxis already possess this technology. As a reference point, most new cars today come equipped with level 2 systems, which require continuous human oversight.
While the Halcyon’s groundbreaking technologies may still be a few years away from becoming a reality, Chrysler has ambitious plans to launch its first all-electric vehicle by 2025. While this initial release may not boast all the capabilities of the Halcyon, it signifies a significant step forward as Chrysler prepares to transition its entire portfolio to a fully electric lineup by 2028.
The Future of All-Electric Vehicles
Despite a growth slowdown, the demand for all-electric vehicles continues to rise. In 2023, over 10 million all-electric vehicles were sold worldwide, and S&P Global estimates that this number will increase to almost 14 million in 2024.
However, only 1.2 million of the total sales in 2023 were made in the United States. Currently, Stellantis does not offer all-electric vehicles in the U.S. market but sells them overseas instead. Stellantis experienced significant success in the first half of 2023, selling approximately 169,000 all-electric vehicles, which accounted for about 5% of their total sales. The full-year figures will be reported on Feb. 15.
In terms of plug-in hybrid electric vehicles (PHEVs), Stellantis sold around 142,000 units in the U.S., representing a remarkable 124% year-over-year increase and accounting for approximately 9% of their total volumes.
While Stellantis’s announcement is significant, it hasn’t had an immediate impact on the company’s stock. In premarket trading, their shares have experienced a minor decline of about 0.9%, while S&P 500 and Nasdaq Composite futures have also dipped by 0.4% and 0.7%, respectively.
Interestingly, Stellantis’s stock performance over the past year stands in stark contrast to its industry peers. During this period, Stellantis shares have surged by roughly 47%, while Ford Motor and GM have experienced declines of 1% and 7% respectively.
With such impressive gains, Stellantis’s stock is currently trading at about 4.3 times the estimated 2024 earnings, making it an attractive investment option when compared to Ford’s seven times multiple and GM’s 4.5 times multiple.
In conclusion, the electric vehicle market is continuing to thrive, with Stellantis positioning itself as a leading player in the industry. Despite its success overseas, the company’s entry into the U.S. market remains highly anticipated.
