Investing.com -- Milan-listed shares in Stellantis NV (BIT:STLAM) rose on Wednesday after the U.S.-European carmaking giant posted record first-half sales thanks in part to strong demand for its electric vehicles.
The maker of popular car models like Jeep and Alfa Romeo reported net revenue of €98.4 billion in the January to June period, a jump of 12% versus the prior six months of 2022. Adjusted operating profit of €14.13B also topped estimates of €12.21B.
All-electric vehicle (EV) sales jumped by 24% to 169,000 units. Like many of its peers in the automotive industry, Stellantis has been prioritizing EV sales. The group currently has 25 EVs on the market and plans to launch a further 23 by the end of 2024.
But following a move by rival Tesla (NASDAQ:TSLA) to slash prices earlier this year, Stellantis has been facing pressure to lower prices while also keeping a lid on costs.
Adjusted earnings before interest and taxes (EBIT) margin dropped slightly to 14.4% from 14.5% year-on-year. In particular, the first-half EBIT margin in North America, Stellantis's most profitable market, fell by 60 basis points to 17.5%.
Chief executive Carlos Tavares noted that the previous period was boosted by broader inflationary pressures, adding that the company will now need to "work harder" on cost reduction in order to make up for the weaker pricing environment.
However, he defended the first-half performance, calling it "outstanding" and supportive of "long-term stability."