Fiat Chrysler intends to invest a total of EUR 700 million in the establishment of a production line for a new electric version of its 500 model (BEV), according to a top executive from the company.
The investment represents part of a EUR 5 billion investment plan, which is to be carried out in Italy up to 2021.
As of 7:02 GMT on Friday the shares of Fiat Chrysler were losing 0.54% (EUR 0.066) on the day to trade at EUR 12.270 on the Milan stock exchange.
In New York, Fiat Chrysler shares closed lower for the fifth time in the past eleven trading sessions on Thursday. The stock went down 0.43% ($0.06) to $13.95, after touching an intraday low at $13.87, or a price level not seen since July 2nd ($13.85).
Shares of Fiat Chrysler Automobiles NV have retreated 3.53% so far this year, following an 18.95% drop in 2018.
According to Pietro Gorlier, Fiat Chryslers Chief Operating Officer for Europe, Middle East and Africa, the first robot of the future electric 500 assembly line was installed on July 11th at its Mirafiori plant in Turin. It is expected to manufacture 80 000 vehicles per year, beginning from the second quarter of 2020.
Analyst stock price forecast and recommendation
According to CNN Money, the 22 analysts, offering 12-month forecasts regarding Fiat Chrysler’s stock price, have a median target of $15.81, with a high estimate of $21.46 and a low estimate of $11.28. The median estimate represents a 13.34% upside compared to the closing price of $13.95 on July 11th.
The same media also reported that at least 13 out of 24 surveyed investment analysts had rated Fiat Chrysler’s stock as “Hold”, while 8 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.
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