MILAN, Feb 6, 2026, 15:15 CET
- Stellantis took a €22.2 billion hit and warned of a hefty loss in the second half after overhauling its EV strategy
- This marks the largest loss yet in an industry downturn that has already triggered around $55 billion in write-downs
- Management flagged that cash outflows are set to continue for years and put the 2026 dividend on hold
Stellantis took a €22.2 billion ($26.5 billion) hit on Friday tied to a major overhaul of its operations. The charge pushed its Milan-listed shares down by as much as 30%, with the write-down briefly exceeding the company’s entire market value. 1
The blow comes as legacy automakers pull back from their previous all-in electric vehicle bets, caught in the squeeze of weaker-than-expected demand, price wars in China, and changing regulations in crucial markets. Investors are demanding that boards justify every billion spent—once brushed off as simply part of “the transition.”
Automakers have racked up roughly $55 billion in write-downs over the past year amid a pullback on electric vehicle goals, with Stellantis taking the biggest single hit, a Reuters tally shows. 2
Chief executive Antonio Filosa acknowledged the company had “over-estimated the pace of the energy transition” and is now revising its strategy to include a broader range of powertrains, such as hybrids and internal-combustion engines. “What we are announcing today is an important strategic reset,” he told reporters.
Stellantis said €6.5 billion of the total will be paid in cash over four years, and it confirmed no dividend will be issued in 2026 following a full-year loss. The firm also approved up to €5 billion in perpetual subordinated hybrid bonds — a debt instrument ranked below other borrowings — to bolster its balance sheet. 3
The company’s preliminary results indicate a net loss between €19 billion and €21 billion for H2 2025. It also forecast a mid-single-digit increase in net revenues for 2026, alongside a low-single-digit adjusted operating margin, as tariff costs are expected to climb.
A significant portion of the charge came from the United States, where Stellantis said it needed to adjust product plans to match customer demand and new emissions regulations. This followed a steep downgrade in its outlook for battery-electric vehicles, or BEVs. In accounting terms, the adjustment involves asset impairments and write-offs—charges that lower the reported value of platforms, projects, and other investments.
The reset involves cutting back segments of the EV supply chain and boosting warranty provisions following quality concerns, which Filosa attributed to earlier cost-cutting measures. Stellantis noted it brought on over 2,000 engineers in 2025, primarily across North America, to tackle these issues.
Stellantis will sell its 49% share in a Canadian battery joint venture to partner LG Energy Solution as part of a move to streamline planned battery capacity. The automaker also announced it scrapped products unlikely to hit profitable volumes, including a previously planned Ram 1500 BEV.
The market took a sharp hit, largely due to Stellantis’ heavy dependence on Jeep and Ram profits in the U.S., where EV adoption lags behind Europe. The unexpected charge far exceeded investor expectations. Filosa stepped in last summer after former CEO Carlos Tavares was ousted in late 2024, Reuters reported.
Peers have also made comparable, though smaller, adjustments: Ford revealed a $19.5 billion write-down in December 2025 and pivoted focus back to hybrids and combustion engines; General Motors took a $6 billion hit in January; Volkswagen reported about a 5.1 billion euro charge tied to last year’s Porsche revamp, including impairments.
Several analysts flagged the size of Stellantis’ move as a potential problem — suggesting companies might be overcorrecting. Gartner’s Pedro Pacheco cautioned about an “overreaction” in how firms shift their strategies. AJ Bell’s Russ Mould went further, saying Stellantis “got it wrong” on how quickly the electric transition would happen.
The pivot isn’t without risks. Should EV demand bounce back quicker than anticipated, or if regulators clamp down with tighter deadlines, Stellantis might end up with fewer competitive BEVs ready, having already written down platforms and scrapped projects — all while facing years of ongoing cash outflows.
