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Could Fiat Chrysler Rise on Acceleration of Electric Car Plan?

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Jun. 26 2019, Updated 2:20 p.m. ET

Fiat Chrysler stock

Last week, the Italian-American automaker Fiat Chrysler Automobiles (FCAU) surged by 4.7%, much higher than its 0.5% rise in the previous week. As of June 24, Fiat Chrysler has gone up by 7.2% year-to-date, underperforming its direct peers such as General Motors (GM) and Ford (F). GM and Ford have gone up by 10.5% and 30.1%, respectively, in 2019 so far.

In 2018, Fiat Chrysler lost 19.9% after yielding a solid 102.7% positive returns in 2017. Other automakers General Motors, Ford, and Ferrari (RACE) also fell by 17.8%, 36.5%, and 6.6% in 2018 due to a massive market-wide sell-off in the fourth quarter.

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Latest updates and technical levels

According to Thomson Reuters, Renault chair Jean-Dominique Senard on June 25 said that Renault’s merger deal with Fiat Chrysler would have been a wonderful project for the Renault-Nissan-Mitsubishi Alliance. Senard added that he never considered Fiat Chrysler’s merger deal without keeping the alliance in mind.

Senard’s statement comes a couple of weeks after Fiat Chrysler withdrew its merger offer with Renault on June 6. Read Why Fiat Chrysler Withdrew Its Merger Offer with Renault to learn more.

On June 14, Fiat Chrysler partnered with an American energy management advisory company Enel X and a French electric utility firm ENGIE (ENGIY). Fiat Chrysler aims to accelerate its electric vehicle development by partnering with these companies, which is in line with its 2018-2022 business plan.

On Monday, Fiat Chrysler stock settled at $13.99 on the NYSE. The stock has reached close to an important horizontal resistance level at $14.15. A violation of this resistance could attract renewed buying pressure for Fiat Chrysler stock this week.

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