TLDR
- Stellantis stock crashed over 20% Friday after announcing a massive $26.5 billion writedown linked to scaling back electric vehicle plans.
- The automaker expects a net loss of $19-21 billion for the second half of 2025 and suspended dividend payments for 2026.
- Writedowns stem from lower EV sales assumptions and changes to product roadmap to align with customer preferences.
- Company will take $6.5 billion in cash outflows over the next four years as part of restructuring.
- Full-year results will be released February 26, with management hosting a call to discuss preliminary numbers.
Stellantis stock plunged more than 20% in Friday trading after the automaker dropped a bombshell on investors. The company announced charges of roughly $26.5 billion related to scaling back its electric vehicle strategy.
Milan-listed shares fell as much as 24% to €6.17. That’s the lowest level since May 2020.
The Paris-listed shares dropped 23.9%. Trading was halted momentarily after an initial 14% decline as the market absorbed the news.
If losses hold, this will mark the biggest one-day drop in company history. The selloff wiped out more than $5 billion from Stellantis’ market cap.
Shares of Exor, the holding company of Italy’s Agnelli family and top Stellantis investor, fell nearly 5% in Amsterdam.
Massive Loss Coming
The Franco-Italian carmaker expects to post a net loss between $19 billion and $21 billion for the second half of 2025. That’s driven almost entirely by the restructuring charges.
The writedowns reflect “sharply lower assumptions for EV sales” according to company statements. Most of the charges stem from changes to the product roadmap.
Stellantis said it conducted a thorough assessment of its strategy to align with “real-world preferences of its customers.” Translation: buyers aren’t snapping up EVs at the pace the company expected.
The charges include about $6.5 billion in cash outflows over the next four years. That’s actual money walking out the door.
Dividend Axed, Bonds Planned
The company suspended its 2026 dividend entirely. Management says the move protects the balance sheet during the reset.
Stellantis also plans to raise up to $5 billion through hybrid bond issuance. The new financing will help fund the restructuring.
“The company has taken the vast majority of decisions required to correct direction,” Stellantis said in the release. That includes “aligning our product plans and portfolio with market demand.”
For 2026, management guided for mid-single-digit revenue growth. The adjusted operating margin should see low-single-digit improvement.
Worse Than Expected
Broker Equita said the writedown came in “well above” initial expectations of more than $2 billion. A Milan-based trader noted the market was caught off guard by the announcement coming ahead of full-year results.
“The bill comes due,” the trader said. “The market amplifies everything and it’s been surprised by the announcement of these data outside of the expected release.”
Jefferies analyst Philippe Houchois highlighted that Stellantis “announced significantly higher restructuring charges” and provided “loose 2026 guidance.”
The stock has been under pressure for years. Italian-listed shares fell nearly 25% in 2025 after dropping 40.5% the year before. Shares are down more than 13% so far in 2026.
Stellantis CEO and finance chief will host a call at 1300 GMT Friday to discuss the preliminary results. The full-year report drops February 26.
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