New York, Feb 6, 2026, 12:56 PM EST — Regular session
Stellantis N.V. shares plunged around 24% to $7.21 in midday New York trading on Friday, after the automaker announced a €22.2 billion ($26.5 billion) writedown tied to scaling back its electric-vehicle ambitions. The stock touched a session low of $6.77. In Milan, shares tumbled as much as 24%, triggering a brief trading halt following the early slide. Reuters
The charge hits investors who are already jittery about the pace of consumer adoption of battery cars and the heavy spending legacy automakers face to stay competitive while protecting profits on their traditional models. For Stellantis, the selloff throws cash concerns into sharp relief: how much it will cost to wind down projects, address quality issues, and still bankroll upcoming launches.
Stellantis flagged second-half 2025 charges totaling roughly €6.5 billion in cash payments, spread across four years. The largest chunk, €14.7 billion, stems from revising U.S. product plans and emissions targets amid much lower battery-electric vehicle (BEV) expectations. The company also set aside €2.1 billion to downsize the EV supply chain and €5.4 billion for other costs, including a rise in warranty provisions and restructuring tied to European workforce reductions. Stellantis said it won’t pay an annual dividend in 2026. The board greenlit up to €5 billion in non-convertible subordinated perpetual hybrid bonds — debt-like instruments that investors often view as equity-like. The automaker scheduled its next Investor Day for May 21. Stellantis.com
On a call, CEO Antonio Filosa admitted earlier EV transition forecasts were overly optimistic, framing Friday’s adjustment as a reset based on actual customer demand. Stellantis now expects a second-half 2025 net loss between €19 billion and €21 billion, with industrial cash burn hitting €1.4 billion to €1.6 billion. The company also projected mid-single-digit net revenue growth and a low-single-digit adjusted operating income margin for 2026, a core profit metric. Russ Mould, investment director at AJ Bell, said the writedown revealed the firm underestimated the speed of the shift from combustion engines. Meanwhile, a portfolio manager at AcomeA SGR said the market needs more proof before regaining confidence. Reuters
Stellantis has agreed to sell its 49% stake in NextStar Energy, its Canadian battery joint venture, to LG Energy Solution. The deal still requires regulatory approval. Filosa noted the move will help “secure the battery supply” for Stellantis’ electric vehicles. LG Energy Solution CEO David Kim added that gaining full control will enable the company to better meet demand beyond car batteries, including energy storage systems. Stellantis.com
Stellantis released fresh operating data that flew under the radar during the selloff. The company reported estimated shipments of 1.5 million vehicles in Q4, up 9% year-over-year. North America drove the gain with a 43% increase. Orders in the region surged nearly 150%, fueled by new and updated Jeep, Ram, and Dodge models. Meanwhile, European shipments slipped, weighed down by a softer van market and stiffer competition. Stellantis.com
The shift reflects a wider rethink in the auto industry as manufacturers scale back EV ambitions and take hits on projects aimed at quicker rollout. Reuters reports about $55 billion in EV-related write-downs in the last year alone, with major hits at Ford, General Motors, and Volkswagen as they adjust product strategies and budgets. Reuters
But the accounting charge doesn’t address the core concern for shareholders: will Stellantis be vulnerable if regulations tighten once more or if Chinese competitors continue to chip away with lower-cost EVs? The cash impact of these charges, along with the hybrid bond move, means investors will watch the balance sheet just as closely as the company’s product plans.
Investors will be watching closely for specifics on the timing of the hybrid bond issuance, the pace of related cash outflows, and if quality and warranty metrics settle down after the company reversed previous operational decisions. The next major event for the stock is the release of full-year 2025 results on Feb. 26. Stellantis.com
