Stellantis (STLA) May Build EVs in Canada with Chinese Partner Zhejiang Leapmotor

FomoAnxiety · 2026-04-01T20:34:31+00:00

Stellantis is in early talks with Zhejiang Leapmotor to establish electric vehicle production in Canada, utilizing its idle Brampton plant. This initiative follows tariff changes and poses challenges including U.S. regulatory concerns and local job demands.

FomoAnxiety

2026-04-01 20:34:31

Abstract generation in progress

Automaker Stellantis (STLA) is exploring plans to build electric vehicles in Canada with its Chinese partner Zhejiang Leapmotor, according to Bloomberg. While talks are still in the early stages, the move would be the first major Chinese auto investment in Canada since the government recently eased tariffs on Chinese EVs. At the same time, this reflects how quickly the global auto industry is changing, especially as trade policies change and companies look for new production strategies.

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The discussions are focused on Stellantis’ idle Brampton, Ontario, plant, where thousands of workers have been laid off after previous production plans were scrapped. Initially, the site was set to build a new Jeep SUV, but those plans were moved to the U.S. following tariffs introduced by President Donald Trump. Now, Stellantis is considering using the plant for a joint venture with Leapmotor, a company it already has a stake in and operates globally through a shared EV business.

However, no final decisions have been made, and the proposal comes with challenges. For instance, U.S. officials have warned Canada about allowing Chinese-backed production that could potentially enter the U.S. market, while Canadian unions and suppliers want any deal to include local manufacturing and jobs. In addition, regulatory uncertainty remains, as vehicles built with Chinese technology may face restrictions crossing into the U.S.

Is STLA Stock a Good Buy?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on STLA stock based on seven Buys, 10 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average STLA price target of $9.52 per share implies 28.1% upside potential.

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