An Interesting Big Name Is Betting on a Stellantis Turnaround -- Should You?

Since 2024, Stellantis (NYSE: STLA), Ford Motor Company (NYSE: F), and General Motors (NYSE: GM) have traded completely separately despite their business similarities. General Motors has more than doubled in share price, while Ford has remained in neutral with a 2% decline over that timeframe, and Stellantis tumbled 70% lower. Sometimes, when opportunity knocks, investors should answer the door -- and sometimes the door is best left closed.

One big name, Carvana (NYSE: CVNA), seems to be betting on a Stellantis turnaround and is scooping up dealerships, but should investors follow?

Evolution of sales

Carvana is no stranger to growth after the company pumped major capital into its early expansion plans. Although Carvana has its notable and unique car vending machines, the used-car retailer primarily did business online. That's changing as the company evolves. Carvana scooped up yet another Stellantis dealership last week in its evolution to a hybrid sales model of online and in-person.

When investors scratch the surface, it seems like a fine strategy. While people adapted to the online vehicle sales method, and some even preferred it, Carvana knew there were still consumers only reachable through in-person visits. Buying dealerships not only reaches these consumers, it opens doors to new-vehicle sales, which come with higher margins.

These dealership locations also expand the company's distribution network with these six largely U.S. Southwestern stores. Previously, Carvana's network was heavier on the U.S. East Coast. It also secures Carvana a valuable pipeline of trade-in and off-lease vehicles, which it can then refurbish, certify, and resell.

Carvana could have scooped up dealerships of any automaker or brand, for the most part, which signals that it's betting on Stellantis to have a turnaround and become more relevant again. But should investors make a similar investment?

Not so fast

Before investors are quick to jump aboard a potential Stellantis turnaround, it's wise to glance at a number of challenges facing the company.

First, it should be noted that Stellantis is coming with some financial struggles. One example is the automaker's recent roughly $26 billion charge late in 2025 for a major electric vehicle (EV) strategy adjustment. That had ripple effects on the company, including a massive drop in stock price and a suspended dividend. In fact, for context, that massive charge is larger than the automaker's current market capitalization, which sits at roughly $20 billion.

Another challenge facing Stellantis CEO Antonio Filosa is navigating through the company's large portfolio of 14 automotive brands. These include a Detroit heartbeat with Jeep, Ram, and Chrysler, and Italian flair with Fiat and Alfa Romeo -- though the latter two seem to lack global synergy. Stellantis' global market share has fallen from 8.1% in 2020 to roughly 6.1% in 2025, according to S&P Global Mobility, and some Stellantis brands require significant investment to revive sales.

One of Stellantis' largest challenges will be reviving its North American business core, where high prices, poor product mix, and neglected brands caused not only a sales collapse but turmoil between the automaker and its dealership network. The automaker is pumping a roughly $13 billion investment into the business to reintroduce more gasoline-powered and hybrid models to recapture share. But that could put it even further behind rivals in the evolution toward electric vehicles.

Carvana's strategy to scoop up Stellantis dealerships would work better if the automaker can turn its business around, but it's not absolutely necessary. For investors, Stellantis might be opportunity knocking, but it's not yet time to answer the door.

Daniel Miller has positions in Ford Motor Company and General Motors. The Motley Fool recommends General Motors and Stellantis. The Motley Fool has a disclosure policy.