Shares of French carmaker Renault plunged significantly after the company lowered its 2025 guidance, marking a challenging moment in the automotive industry. On February 26, 2024, Renault showcased its Espace E-Tech full Hybrid and Megane E-Tech 100% Electric EV at the Geneva Motor Show, but the excitement was overshadowed by financial concerns.
- Renault Espace and Megane showcased at Geneva Motor Show.
- Renault shares dropped 17% after guidance cut.
- New interim CEO appointed, Duncan Minto.
- Operating margin forecast lowered to 6.5%.
- Deutsche Bank cuts target price to 47 euros.
- Challenges include muted demand and competition.
After announcing a new interim CEO, Duncan Minto, following Luca de Meo’s resignation, Renault’s stock dropped as much as 17%. As of 2025-07-16 11:36:00, shares were trading down 15.6%, reaching a new 52-week low. Analysts are now questioning Renault’s ability to navigate the evolving market landscape.
This situation raises critical questions about Renault’s future in a competitive market. Will the new leadership effectively address the challenges posed by rising competition and muted demand? Analysts suggest that Renault’s revised profit forecasts may further dampen investor sentiment. Key points include:
- Deutsche Bank cut Renault’s target price, indicating cautious investor sentiment.
- Ongoing trade tensions and competition from Chinese manufacturers add pressure.
- Muted demand in Europe could hinder recovery efforts.
As Renault prepares to report its half-year results on July 31, the company must focus on strategic initiatives to regain market trust. Will they adapt quickly enough to meet the challenges ahead?
