Stellantis NV, the multinational automotive corporation, witnessed a significant surge of 8.9% in its stock price during intraday trading on Wednesday. This remarkable upswing can be attributed to a confluence of factors, primarily driven by the Trump administration's considerations and Stellantis' strategic pricing moves.
At the heart of this rally lies the potential one-month delay in tariffs on auto imports from Canada and Mexico. According to reports, the Trump administration is actively weighing this temporary reprieve, offering automakers like Stellantis a short-term respite. Officials from the administration met with top executives from Ford, General Motors, and Stellantis to discuss the matter on Tuesday.
Compounding the positive sentiment, former US President Donald Trump has proposed making interest payments on car loans tax-deductible, but with a caveat – the tax benefit would only apply to vehicles manufactured in America. This move is seen as a potential catalyst for boosting demand for domestically produced vehicles, which could directly benefit Stellantis and its US-based operations.
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