Milan, February 7, 2026, 10:54 (CET) — The market is shut.
- Stellantis shares tumbled 23.8% in New York on Friday, with the automaker disclosing €22.2 billion in charges related to pulling back on its EV plans.
- The company dropped its 2026 dividend and is preparing as much as €5 billion in hybrid bonds to shore up liquidity.
- All eyes now turn to Feb. 26, when results are set to land—offering the first real look at cash burn and just how deep the reset goes.
Stellantis shares (STLA) slumped 23.8% to end Friday at $7.28 in New York. The Jeep maker disclosed a €22.2 billion ($26.5 billion) charge related to cutting back its electric-vehicle ambitions and scrapped its dividend for 2026.
This week’s rout changes the tone heading into next week, pushing investors to reconsider cash strategy and capital return policies for a company once prized for its yield. Markets are closed for now, but there’s likely to be close attention on signals from credit and analyst desks before the bell on Monday.
Stellantis shares slumped Friday, pulling European auto stocks down with them as the carmaker suffered its steepest one-day loss on record, Reuters reported in its market summary. Reuters
Stellantis expects to take about €22.2 billion in charges during the latter half of 2025, with some €6.5 billion in cash outflows planned over the coming four years. The board also cleared as much as €5 billion in non-convertible subordinated perpetual hybrid bonds. Chief executive Antonio Filosa pointed to “over-estimating the pace of the energy transition” as the reason behind the writedowns. The company scheduled an Investor Day for May 21. Stellantis Media
Friday brought a blunt assessment from Filosa, who labeled previous expectations as “over optimistic” just as Stellantis rolled out its change in direction. Analysts cautioned that the market might hit back if it senses Stellantis is trading one risky play for another. “There is an overreaction,” said Pedro Pacheco, an analyst at Gartner. Meanwhile, Russ Mould, investment director at AJ Bell, argued the writedown made it clear Stellantis “got it wrong” on how quickly the transition would unfold. The company also agreed to offload its 49% share in a Canadian battery venture to LG Energy Solution, according to Reuters. Reuters
Stellantis’s decision comes as part of a wider pullback—global automakers have racked up roughly $55 billion in writedowns over the past year, Reuters noted, with Ford, General Motors, and Volkswagen/Porsche all taking charges as the total climbed. Reuters
An accounting write-down slashes the official value of assets—usually a non-cash charge, though investors zero in on the portion that ends up as an actual outflow. Hybrid bonds fall somewhere between debt and equity on the capital stack, giving companies more flexibility on their balance sheets without going for a straight equity raise.
On Monday, investors are zeroed in on whether the stock stabilizes after Friday’s tumble or if the dividend suspension drags it lower. The market’s also looking for any specifics on when the hybrid bond might launch and when the Canada battery exit kicks in—clues to how urgently Stellantis is moving to secure cash and trim its EV bets.
Here’s the risk: tighter emissions rules or a sudden surge in EV demand could leave Stellantis on the hook twice—once for making the shift, then again if it has to swing back to electrification at a steeper price. Reuters Breakingviews warned that after a cutback this deep, reversing course won’t come cheap. Reuters
Investors now look to Feb. 26, the date Stellantis plans to post its full-year 2025 financials. That report will put Friday’s warning—cash outflows, margin pressure—to the test, showing whether management has kept things in check or if the trouble is ongoing. stellantis.com
