Stellantis shares crash after disclosure of €22 billion EV reset charge

Stellantis shares collapsed on Friday after the company revealed it will take a €22 billion ($26 billion) hit tied to a full reset of its business strategy.

That number alone sent the entire European auto sector into panic. By 10:30 a.m. local time in Milan, Stellantis stock was down 22.9%. On Wall Street, the company’s New York-listed shares crashed 20.8% in premarket trading. The fallout didn’t stop there. Renault dropped 2%, Valeo and Forvia both lost more than 1.2%.

The damage stems from Stellantis admitting it overestimated how fast people would actually buy electric cars.

CEO Antonio Filosa said the writedown “largely reflect[s] the cost of over-estimating the pace of the energy transition that distanced us from many car buyers’ real-world needs, means and desires.”

He added that poor execution by the previous leadership also played a role, and that those issues are now being “progressively addressed by our new Team.”

Stellantis cuts dividend, suspends products, and sells EV stake

To deal with the blow, Stellantis is suspending its 2026 dividend. It’s also trying to raise up to €5 billion through hybrid bonds to keep its balance sheet stable.

On top of that, the company confirmed it expects a net loss in 2025. This is part of a wider reset strategy announced last year, which involved dropping unprofitable vehicles, improving manufacturing systems, and launching 10 new models.

As part of that same reset, Stellantis made what it called the “largest investment in Stellantis’ U.S. history,” committing $13 billion over four years. The funds will be used to expand operations and create 5,000 new American jobs.

The company claims these moves helped it get back to volume growth in 2025. U.S. market share rose to 7.9% in the second half of the year. In Europe, Stellantis kept its spot as the second-largest automaker.

Filosa said the company isn’t ditching electric vehicles entirely but is now adjusting to reality. The EV rollout will now move “at a pace that needs to be governed by demand rather than command.”

Basically, they’re not going to force it anymore. And it’s not just Stellantis. Both Ford and GM recently revealed they’re writing off $19.5 billion and $7.1 billion, respectively, due to their own EV overreaches.

The firm also announced it’s pulling out of a Canadian battery joint venture called NextStar Energy. LG Energy Solution, the partner in that project, will take full control of the facility. That battery plant was a big part of Stellantis’ electrification plans. But clearly, those plans are being chopped up fast.

New leadership faces 2026 slump and falling stock

This all comes as Stellantis prepares to unveil a new long-term plan at its Capital Markets Day in May. That plan can’t come soon enough.

The stock has been bleeding for years. Italian shares fell 25% in 2025 and a brutal 40.5% the year before. So far in 2026, shares are down another 13%. This isn’t some sudden storm. It’s been a slow wreck.

Filosa called 2026 the “year of execution,” but that’s looking more like a year of survival. In July, Stellantis said tariffs will eat away another €1.5 billion in 2025. The company already reported a first-half net loss of €2.3 billion.

Even analysts who aren’t usually alarmist couldn’t look away. UBS called the stock’s drop “expected” due to the scale of the writedown and the weak 2026 guidance. Still, they said the company’s strong market position and clean-up efforts might give it a shot at bouncing back… eventually. That’s a big maybe.

Russ Mould from AJ Bell said Stellantis made a “miscalculated bet” on how fast people would switch to electric. And he’s not convinced that the company’s EV problem is only about market conditions.

AJ said, “That begs the question as to whether Stellantis’ frustration over its EV sales is linked to market issues or that drivers simply don’t like its vehicles.”

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