Stellantis dives after announcing €22 billion (~$26 billion) charge related to its EV pullback
Stellantis shares are tumbling on Friday, down as much as 25% in trading in Milan and its US listing suffering similarly in the premarket, after the Jeep owner announced it would take €22 billion (~$26.5 billion) worth of charges related to scaling down its electric vehicle ambitions.
Announcing a “reset” of its business, Stellantis detailed that the charges “largely reflect the cost of over-estimating the pace of the energy transition that distanced us from many car buyers’ real-world needs, means and desires,” as well as “previous poor operational execution.” The company’s board has also authorized the company to issue up to €5 billion of nonconvertible subordinated perpetual hybrid bonds, in order to preserve “a strong balance sheet and liquidity position” while the business looks to get back to positive free cash flow generation.
The breakdown of the losses are as follows:
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€14.7 billion for changing product plans (largely reflecting significantly reduced expectations for battery electric vehicle products).
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Write-offs related to canceled products of €2.9 billion.
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Impairment of platforms of €6.0 billion.
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€5.8 billion of the sum will be cash payments spread over the next four years, relating to “cancelled products as well as other ongoing BEV products whose volumes are now expected to be considerably below prior projections.”
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€2.1 billion of charges related to the resizing of the EV supply chain.
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€5.4 billion related to other changes in the company’s operations.
Stellantis’ strong bet on electric vehicles under former boss Carlos Tavares has been de-emphasized since Antonio Filosa became the CEO in June 2025, but this morning’s announcement suggests a much more significant shift in strategy.
The company also noted that these initial measures have returned its business to positive volume growth, sharing in a separate report that the company notched 1.5 million units shipped in Q4 2025, up 9% year on year.
Stellantis will host a call at 8 a.m. ET to discuss the preliminary results, before releasing its full-year report on February 26.
The company also said it will not pay an annual dividend in 2026 and announced that it agreed to sell its 49% stake in battery manufacturer NextStar Energy to LG Energy Solution.
