Stellantis Is Strengthening Its Ties to Palantir. Down 35% YTD, Should You Buy the Dip in STLA Stock?

Stellantis (STLA) has had a brutal stretch. Shares are down roughly 35% year-to-date (YTD), the company booked a steep net loss in 2025, and investors are still waiting on signs of a meaningful turnaround. 

But on Tuesday, Stellantis took a step that signals it's serious about rebuilding not just on the factory floor but in how it runs its entire operation. The automaker announced a renewed and expanded five-year partnership with Palantir Technologies (PLTR), deepening a collaboration that began in 2016. 

And for investors wondering whether STLA stock is a value trap or a genuine recovery play, this deal deserves a closer look.

Why the Palantir Deal Matters for Stellantis

Under the renewed agreement, Stellantis will expand its use of Palantir Foundry and begin deploying Palantir's Artificial Intelligence Platform (AIP) across select business functions and regions, according to a company statement.

Foundry is a platform that pulls together fragmented data from across a company and puts it in one place. For an organization as sprawling as Stellantis, which operates across North America, Europe, South America, and the Middle East, the deal could provide multiple operational insights. The company has historically struggled with inconsistent processes and siloed information.

AIP will also integrate artificial intelligence directly into Stellantis' existing internal data and business processes. The goal is faster decision-making, better traceability, and a more governed approach to scaling AI across the company.

"We are helping Stellantis embed secure, governed AI at the heart of its operations-turning data into a decisive advantage across every function and geography," said François Bohuon, General Manager of Palantir France and EMEA Executive, and Grégoire Omont, Europe Operations Lead.

Where Stellantis Stands After a Rough 2025

In 2025, Stellantis shipped 5.5 million vehicles, up 1% year-over-year (YoY), but net revenues fell 2% to €153 billion. 

• Its adjusted operating income margin turned negative, coming in at -0.5%. Industrial free cash flow was negative €4.5 billion for the full year.
• The net loss came in at a staggering €22 billion, driven heavily by strategic charges and a reset of its product and regulatory posture.

But here's what investors need to pay attention to: the second half of 2025 looked meaningfully better than the first. 

• Revenue was up 10% in the second half.
• North American shipments surged 39%.
• Order books in both North America and Europe finished the year at three months of sales. U.S. days supply ended the year at a healthy 69 days.

Chief Executive Officer Antonio Filosa said on the company's earnings call that 2026 is "the year of execution," with the company targeting progressive improvement across all business metrics. 

He confirmed that both North America and Europe are expected to return to positive operating income in 2026.

Is the Dip in STLA Stock Worth Buying?

The Palantir expansion indicates that Stellantis isn't just cutting costs and hoping for the best, but it's building the infrastructure to run smarter. The company has already hired more than 2,000 new quality engineers. 

It's increasing production of HEMI V-8 engines by 100,000 units in 2026. It's launching new products into white-space segments in the U.S. and Europe. And in January 2026, U.S. market share was already up YoY. The Palantir deal adds an AI backbone to all of that.

That said, risks remain real. Tariff headwinds, a tough European pricing environment, and currency pressures, especially from the Turkish lira, are expected to weigh on the automaker over the next 12 months. 

Out of the 24 analysts covering STLA stock, eight recommend “Strong Buy,” 13 recommend “Hold,” and three recommend “Strong Sell.” The average Stellantis stock price target is $9.43, above the current price of $6.75. 

Stellantis is a recovery story, and the building blocks are starting to come together. For investors with patience and a tolerance for volatility, the dip may be worth a second look.