Stellantis NV (STLA) shares took a sharp dive in Wednesday's trading session, plummeting 5.01% as investors grappled with ongoing concerns about the impact of import tariffs on the automotive industry. The significant drop comes amid a broader context of challenges facing import-heavy automakers in the current trade environment.

Industry analysts point to Stellantis' higher exposure to import tariffs as a key factor in the stock's decline. Unlike its American counterparts, Ford and General Motors, Stellantis manufactures a smaller percentage of its U.S.-sold vehicles domestically. Reports indicate that while Ford produces about 80% of its U.S.-sold cars domestically, Stellantis' domestic production for the U.S. market is closer to 55%. This higher reliance on imports potentially leaves Stellantis more vulnerable to the negative effects of tariffs.

The steep drop on Wednesday is part of a larger trend for Stellantis, with the stock reportedly down about 30% since the November 5 presidential election. As trade tensions persist and the automotive industry faces multiple headwinds, including production quality issues and fluctuating demand, investors appear to be reassessing their positions in import-dependent auto manufacturers. The market will be closely watching for any updates from Stellantis management regarding strategies to mitigate the impact of tariffs and improve their competitive position in the challenging auto market.