Milan, Feb 6, 2026, 11:07 (CET)
- Stellantis took a hit of roughly €22.2 billion by scaling back its EV ambitions; shares dropped nearly 19% in early Milan trading
- The group signaled a preliminary loss of €19–€21 billion for the second half of 2025 and announced it will forgo a dividend in 2026
- LG Energy Solution announced it will acquire Stellantis’ 49% share in Canada’s NextStar Energy JV for just $100
Stellantis took a hit of roughly 22.2 billion euros ($26.5 billion) in charges linked to scaling back its electric-vehicle efforts, sending its shares tumbling nearly 19% on Friday.
This blow ranks among the largest balance-sheet write-downs from a top automaker that once promised a rapid shift to battery vehicles. It comes as investors gauge how deep the EV slowdown’s cash drain will be—and who might fold first.
Stellantis announced it will unveil a new business plan in May following what it described as a “strategic shift” aimed at putting customer choice front and center in product planning. Competitors have made comparable moves, but none as extensive.
Stellantis said the charge includes roughly 6.5 billion euros in cash payments spread over four years. It expects a net loss of 19–21 billion euros in H2 2025, on net revenue of 78–80 billion euros. The company will skip paying a dividend in 2026. Its board greenlit up to 5 billion euros in perpetual “hybrid” bonds — a form of debt straddling traditional bonds and equity. Stellantis reported about 46 billion euros in industrial liquidity at year-end. markets.businessinsider.com
The company’s breakdown reveals the complexity of the reset. Stellantis allocated 14.7 billion euros of the charge to product and platform changes, 2.1 billion euros to scaling back the EV supply chain, and 5.4 billion euros to other operational actions, including a rise in warranty provisions.
The stock swing was extreme, even for the auto industry. Shares plunged up to 24%, hitting 6.17 euros, triggering a brief trading halt right after an initial 14% tumble. This slide erased over 5 billion euros from Stellantis’ market cap, according to LSEG data.
Chief executive Antonio Filosa described the writedown as a necessary adjustment to timing and execution. He said the charges stem from “over-estimating the pace of the energy transition” and “previous poor operational execution” that the new team aims to reverse.
A significant portion of the charge comes from North America. Stellantis attributed nearly 15 billion euros of the hit to “realigning” product plans with shifting customer demand and updated U.S. emissions standards, after scaling back its outlook for BEVs — fully electric battery-electric vehicles. The company has scrapped projects like the Ram 1500 BEV electric pickup, according to The Guardian.
The battery supply chain is feeling the impact as LG Energy Solution moves to buy Stellantis’ 49% stake in their Canadian joint venture, NextStar Energy, for just $100. The Windsor, Ontario plant will shift focus increasingly toward batteries for energy storage systems but will still supply Stellantis. “Full ownership of NextStar Energy will enable us to respond swiftly to the growing demand from the ESS market,” said LG CEO David Kim. Stellantis’ Filosa called the move “a smart, strategic step” to secure EV supply, while NextStar CEO Danies Lee said it supports long-term investment and jobs at the facility. Reuters
The reversal is being compared to Detroit. According to the Financial Times, the writedown pushes the total cost of reduced EV ambitions at Stellantis, Ford, and General Motors close to $50 billion. Carmakers are scaling back plans made when EV growth seemed more certain and policy backing was firmer.
Things could still deteriorate further. Stellantis’ numbers remain preliminary before the full-year report arrives on Feb. 26, and the cash drain from the reset will stretch over years. If volumes fail to bounce back, warranty expenses and more restructuring might pile on the strain. Filosa promises a reset by May, but investors are already probing what’s missing from these figures — and what deeper cuts lie ahead.
