Stellantis slumps as EV missteps trigger record €22B charge Proactive uses images sourced from Shutterstock
Stellantis NV (NYSE:STLA, EPA:STLA) shares opened a massive 25% lower on Friday after the automaker announced a €22.2 billion charge tied to scaling back electric vehicle (EV) projects and refocusing on hybrids and traditional gas engines.
The company said the write-downs included scrapping projects such as the Ram 1500 REV and prioritizing the return of V8 engines, along with new Jeep and Dodge models.
Stellantis now expects a net loss of up to €21 billion in the second half of 2025, with a low single-digit operating margin for the full year, including roughly €1.6 billion in tariff-related costs. The company also plans to issue up to €5 billion in bonds to strengthen its balance sheet. Detailed full-year results are scheduled for February 26.
The restructuring is part of a broader strategy reset, which also includes a record $13 billion US investment over four years.
The company’s market value in Italy lost more than €5 billion to about €18 billion, marking one of its worst trading sessions ever.
CEO Antonio Filosa pointed to strategic missteps under his predecessor, Carlos Tavares, saying the EV-heavy approach failed to adapt to changing market demand. “The charges announced today 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,” Filosa said in a statement. “They also reflect the impact of previous poor operational execution, the effects of which are being progressively addressed by our new team.”
Stellantis’ massive charge follows similar EV pivots by US automakers Ford and General Motors, which together have booked more than $50 billion in writedowns this year as they reassess electric vehicle investments.
