A Sector in Contrast: From Landmark Profits to Deep Restructuring in Auto Stocks

XPeng posts first quarterly profit but shares fall on weak guidance, while Stellantis faces massive restructuring charges and a plunging stock price.

This week painted a vivid picture of divergence within the global automotive industry. As one Chinese electric vehicle maker celebrated a historic financial milestone, a European automotive giant grappled with profound challenges, highlighting the sector's wildly varying trajectories.

XPeng's Milestone Quarter Meets Cautious Guidance

Chinese EV manufacturer XPeng achieved a significant corporate first: a quarterly profit. The company reported net income for the fourth quarter of 2025. For the full year, revenue surged by nearly 88% to approximately $11.1 billion USD, while vehicle deliveries jumped 126%.

The annual gross margin climbed to 21.3%, a substantial improvement from 14.4% the prior year, driven by cost reductions and an optimized model mix. XPeng invested heavily in innovation, spending 9.5 billion Yuan on research and development in 2025, with 4.5 billion Yuan dedicated to artificial intelligence.

However, investor enthusiasm was tempered by forward guidance. The company's revenue forecast for Q1 2026 is between 12.2 and 13.3 billion Yuan, falling short of the analyst consensus estimate of around 15 billion Yuan. Shares reacted negatively, closing Friday at 15.20 Euros, down over 8% for the day and roughly 13% for the week.

Looking ahead, XPeng plans to launch four new models in 2026, including a flagship SUV equipped with hardware capable of supporting Level 4 autonomous driving. The new P7 sedan, boasting a range of up to 820 kilometers, aims to pressure competitors. The delivery target is set at 550,000 to 600,000 vehicles—an ambitious goal given the ongoing intense price competition in China.

Stellantis Navigates Charging Deal Amidst Major Overhaul

Stellantis has become the final major automaker in North America to secure access to Tesla's Supercharger network. Starting March 19, owners of Jeep, Dodge, Ram, Fiat, and Maserati vehicles can charge at over 27,500 stations. Current models require an adapter costing between $230 and $250 USD, as native NACS ports will only be factory-installed starting with the 2027 Dodge Charger Daytona.

While this infrastructure agreement improves customer experience, it does little to address core financial issues. For the second half of 2025, Stellantis has established provisions of 22.2 billion Euros—termed "reset charges"—which will result in a net loss of 19 to 21 billion Euros. The company has also canceled its dividend for 2026.

The equity trades at 5.50 Euros, precisely at its 52-week low. Since the start of the year, the share price has declined over 43%, and has more than halved over the past twelve months. It currently sits 22% below its 50-day moving average.

Concurrently, Stellantis is collaborating with BMW, GM, Honda, Hyundai, Kia, Mercedes-Benz, and Toyota to develop the IONNA charging network, targeting at least 30,000 high-power stations across North America by 2030. This long-term project is unlikely to alleviate near-term restructuring pressures.

Tesla's Tech Ambitions Shadowed by Legal Challenges

Tesla's strategic focus continues to expand beyond electric vehicles. The company is in negotiations with Chinese suppliers for solar panel production equipment worth $2.9 billion USD, supporting Elon Musk's Davos announcement of a goal to build 100 gigawatts of annual solar manufacturing capacity in the United States.

On the battery front, Tesla published a patent in early March detailing a novel rolling technique. This process creates a uniform film from battery powder using rollers at slightly different speeds, eliminating the need for high-pressure methods that can make materials brittle.

This technological push contrasts with mounting legal issues. A California jury ruled that Musk misled Twitter shareholders ahead of the $44 billion acquisition. Additionally, the NHTSA is investigating Tesla's Full Self-Driving system under limited visibility conditions.

Shares closed Friday at 318.85 Euros, down nearly 7% for the week and approximately 24% below their 52-week high. Wall Street remains divided, with 33 analysts averaging a price target near $388 USD, though individual targets range from $25 to $600 USD, reflecting extreme disparity in outlook.

Steyr Motors: Defense Contracts Fuel Niche Growth

Operating in a different orbit than volume manufacturers, Austrian engine maker Steyr Motors is systematically expanding its defense portfolio through key moves:

• Acquisition of BUKH A/S: This purchase of the Danish firm extends Steyr's power output range from 120–300 HP to 24–700 HP, strengthening its marine and defense business.
• Framework agreement with KNDS until 2034: The contract involves supplying at least 500 motor-generator units for the Leopard 2 battle tank, featuring compact two-cylinder diesel engines with integrated generators.
• Unmanned Surface Vehicles (USVs): The company is positioning itself in this strategically important defense growth segment.

Revenue increased 16.4% in 2025 to 48.5 million Euros. Management is targeting 75 to 95 million Euros for 2026—nearly a doubling. All three covering analysts recommend buying the stock, with a median price target of 66.33 Euros.

A planned supervisory board reshuffle underscores this strategic direction. At the Annual General Meeting on April 10, proposed new members include Rolf Wirtz, former CEO of Thyssenkrupp Marine Systems.

Schaeffler's Volatile Path Following Earnings

Schaeffler's share price has experienced significant volatility. A cautious outlook for 2026, citing difficult global production conditions, initially sent shares down around 19%—the largest single-day drop since March 2020. Days later, on March 3, the release of full annual results triggered a rebound of over 25%, as the company met all its 2025 guidance targets.

For 2026, management expects group revenue of 22.5 to 24.5 billion Euros with an EBIT margin of 3.5 to 5.5%. The E-Mobility division is projected to grow revenue to 5.2–5.8 billion Euros and improve its negative EBIT margin from -16% to between -13% and -15%.

CEO Klaus Rosenfeld outlined three 2026 priorities: accelerating the path to EBIT breakeven in E-Mobility, implementing operational self-help measures, and exploring new growth fields in humanoid robotics, defense, and aerospace. The dividend is set to rise 20% to 0.30 Euros per share, a signal of confidence despite high leverage, with a net debt-to-EBITDA ratio near 3.5x.

Divergent Paths Define the Automotive Landscape

This week underscored the automotive sector's broad spectrum. XPeng hit a historic profit milestone but immediately confronted the reality of China's price war. Stellantis secured access to crucial North American charging infrastructure while facing one of the most significant corporate restructurings in its recent history. Tesla advances in solar and battery tech as legal overhangs persist.

Steyr Motors and Schaeffler represent two facets of European industrial transformation: one capitalizing on rising defense budgets for rapid growth, the other managing the costly transition from internal combustion to electric mobility. The coming weeks will provide concrete catalysts for both, with Steyr's AGM on April 10 and Schaeffler's next test in delivering on its E-Mobility targets.