What's going on?

Carmaker Stellantis reported a beefed-up, record annual profit on Wednesday.

What does this mean?

The name �Stellantis� may not ring a bell for most folks, but mentioning a few of the auto giant�s car brands � like Chrysler, Fiat, and Peugeot � will spark a glimmer of recognition in almost anyone�s eyes. And these days, it�ll have investors� eyes lighting up too. See, while chip shortages hit carmakers worldwide, Stellantis kept its cool, focusing on marketing and on making pricier models instead. And that did the trick: the number of cars Stellantis sold fell by 2%, but revenue still managed to leap up by 18%. That brought profitability to new heights in every market the firm operates in, raking in a record net profit of $18 billion. After that performance, a reward was clearly in order � so Stellantis gave its stock a boost with the announcement of a sizable share buyback program and dividend payout.

Why should I care?

The bigger picture: Low battery.
Stellantis got a welcome jolt from its European EV strategy, with global EV sales revving up by 41%. And it�s aiming high for the future too, planning to double its electric offerings by the end of next year. Thing is, though, dreams like that are on a collision course with one big roadblock: the world�s paltry charging infrastructure. Take Europe: a McKinsey study shows the region�s setting up charging stations at a snail�s pace, meaning it will need to increase 2021�s installation numbers sixfold by 2030 to meet demand.

Zooming out: The biggest loser.
Holding onto last year’s fat margins could be a challenge for Stellantis, especially with Tesla and Ford engaging in a cut-throat price war. Tesla � the original EV giant � made especially drastic cuts, leaving the Model 3 at the cheapest it’s ever been compared to the typical American car. So if Stellantis wants to compete, it might have to cut prices and improve its efficiency to protect margins.