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(Bloomberg) -- Stellantis NV shares fell as investors questioned the sustainability of an apparent turnaround in the key North American market, where its performance was bolstered by price cuts and one-time financial gains.

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Analysts cited a lower-than-expected margin in the region in the first quarter, as well as a booked one-time gain of around €400 million ($467 million) for expected future tariff refunds. They took the shine off Stellantis’s return to profit, causing the stock to drop the most since February.

The Jeep and Peugeot owner has a history of catching investors off-guard, including with a €22.2 billion charge in February tied to its unprofitable electric-vehicle push. That announcement came with far weaker earnings than analysts had anticipated — based in part on reassurance Chief Executive Officer Antonio Filosa had offered only two months earlier. While the company has improved car sales recently, investors aren’t yet confident that its turnaround efforts are making a lasting impact.

“Stellantis communication is broken somewhat with the market,” said Pierre-Olivier Essig, an analyst at AIR Capital. While Thursday’s results look positive at first glance, “there are lots of one-offs, such as the tariffs refund, so the beat is less convincing.”

Stellantis shares declined as much as 10% in Milan. The stock is down around 35% this year, making it the worst performer in Europe’s Stoxx 600 Automobiles & Parts Index. The company has lost around €67 billion in market value since March 2024.

Filosa is finalizing a review of the group’s global operations meant to bring Stellantis back on solid footing, and will present the results on May 21. The company has already walked back its electrification plans and slashed prices to win back market share. It’s offering more hybrid models and addressing quality issues.

Stellantis has pledged to invest $13 billion to improve in the US, a key market for profits. In Europe, where it has identified overcapacity, the group’s Fiat, Citroën and Opel mass-market brands often compete for the same customers.

Its global shipments rose 12% in the three months through March, led by a 17% jump in North America. The manufacturer has sought to reinvigorate Ram by bringing back the powerful Hemi V-8 engine.

Net income climbed to €377 million for the period, after a €387 million loss a year earlier. But Oddo analyst Michael Foundoukidis flagged a lower-than-expected 1.6% margin in North America, and worse-than-expected free cash flow.

The latest results confirm that “the turnaround will take time,” Foundoukidis said in a note. Management still needs to “deliver tangible evidence of execution.”

Like its European peers, Stellantis is under pressure from Chinese automakers expanding in the region. Volkswagen AG on Thursday said it’s seeking more savings due to tougher competition from the likes of BYD Co.

But Stellantis is also exploring deals with manufacturers from the Asian country to address European overcapacity and secure access to technology. This includes plans for closer ties with existing partner Zhejiang Leapmotor Technology Co. and a revived alliance with Dongfeng Motor Corp.

In enlarged Europe, its net sales rose 1% in the period even though car shipments jumped 12%. The company cited negative pricing and tough competition in the region. Filosa has been sparse on providing details on his planned strategic changes, in particular for Europe, referring questions to the investor update next month.

It’s the first time the group reports quarterly earnings, part of a wider overhaul started by Chairman John Elkann. Stellantis previously gave only half-year and full-year financial results. Unlike in previous reports, the company didn’t publish detailed figures for its struggling Maserati brand.

(Updates with analyst comment in 10th paragraph.)

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