The Stellantis logo was photographed following the company’s announcement that it would suspend production at one of its assembly plants in Toluca, Mexico, on April 4, 2025.
Henry Romero | Reuters
car manufacturer stocks Stellantis Shares in the company plunged 27% in European trading on Friday after the company said it expected to take a 22 billion euro ($26 billion) hit from a business reset and signaled it would withdraw from its electrification drive.
The company’s Italian shares fell 26% on the Milan market. In early trading on Wall Street, New York-listed transatlantic companies stock It plummeted by 25%.
Other French car stocks also fell on Friday morning. Valeo and Phorbia Both fell more than 1.2%. renault 2% slide.
“The rates announced today largely reflect the cost of overestimating the pace of the energy transition, which has distanced us from the real-world needs, means and desires of many car buyers,” Stellantis CEO Antonio Filosa said in a statement.
“These also reflect the effects of previous poor business execution, which are being gradually addressed by the new team.”
Stellantis will continue to be at the forefront of EV development, but said its electrification journey will continue at a pace that “needs to be driven by demand rather than command.”
Stellantis also pre-released some fourth-quarter numbers on Friday and said it expected a net loss in 2025. Recognizing its net loss, the company plans to suspend its 2026 dividend and raise up to 5 billion euros in a hybrid bond issue.
The auto giant is targeting mid-single-digit growth in net revenue and low-single-digit growth in adjusted operating margin in 2026.
The company outlined steps it took last year as part of its reset strategy, saying a suspension of dividends and bond issuance will help maintain its balance sheet.
These include the announcement of the “largest investment in Stellantis’ U.S. history” totaling $13 billion over four years, as well as the launch of 10 new products, the discontinuation of products that failed to achieve significant returns, and the restructuring of global manufacturing and quality control capabilities.
In response to a U.S. investment push, the transatlantic automaker announced it will add 5,000 jobs to its U.S. workforce.
These moves have resulted in costs of 22.2 billion euros, but the company said that taken together they will return to positive volume growth in 2025.
In the second half of this year, Stellantis’ U.S. market share rose to 7.9%, but the company said it maintained its second-largest overall market share position in expanded Europe.
Stellantis’ writedown follows multibillion-dollar hits at rivals Ford and GM, which recently announced their own hits worth $19.5 billion and $7.1 billion, respectively, both related to EV exits.
Analysts at UBS said a negative reaction in the stock price was expected given the “size of the sinkhole” and the soft guidance for 2026. But it added that the new management’s “decisive” clean-up and strong regional market fundamentals keep the stock attractive as a potential “turnaround” play in the US.
“Year of Execution”
Friday’s writedown announcement came alongside news that Stellantis will sell its stake in NextStar Energy, a joint venture with LG Energy Solutions that built and operated a battery manufacturing facility in Canada. LG Energy Solutions will take over a 49% stake in Stellantis, the companies announced Friday morning.
The joint venture was part of Stellantis’ broader electrification strategy. Former CEO Carlos Tavares set a goal in 2022 for 100% of sales in Europe and 50% of sales in the United States to be battery electric vehicles by the end of 2010.
The company plans to announce its latest long-term strategy at Capital Markets Day in May.
Stellantis’ share price has been under pressure for some time, with Italian shares down nearly 25% last year and 40.5% the year before. The stock is now down more than 13% since the beginning of 2026.
Stellantis stock price
Filosa previously called 2026 “the year of execution” for the struggling automaker, which has been plagued by years of declining sales, leadership changes and disappointing earnings. In July, the company reported a first-half net loss of 2.3 billion euros and said it expected to be affected by tariffs of about 1.5 billion euros in 2025.
Russ Mould, investment director at AJ Bell, said in a note Friday that Stellantis made a “wrong bet” on electric vehicles, but said the overall picture of EV adoption raised questions about Stellantis’ marketability.
“Concerns about price, access to charging infrastructure and how long the battery will last on the road are long-standing debates about why many drivers still don’t take up electric cars,” he said.
“But prices are coming down, more chargers are being installed, and battery range is improving. The success of companies like BYD suggests there are plenty of people willing to get into this business. So the question arises whether the dissatisfaction with Stellantis’ EV sales is related to market issues, or whether drivers simply don’t like the company’s vehicles.”
Stellantis is scheduled to release its full 2025 financial results on February 26th.
