TLDR
- Stellantis stock plummeted 22% Friday after revealing a $26.5 billion writedown tied to pulling back on electric vehicles.
- The carmaker expects a $19-21 billion net loss for H2 2025 and canceled its 2026 dividend.
- Lower EV demand forced Stellantis to overhaul its product roadmap and strategy.
- Cash outflows of $6.5 billion are expected over four years as part of the reset.
- Full results drop February 26 with management hosting a call Friday to explain the numbers.
Stellantis stock suffered its worst trading day ever Friday. Shares collapsed more than 22% after the automaker revealed a staggering $26.5 billion writedown.
The charges relate to the company’s decision to scale back electric vehicle ambitions. Milan-listed shares hit €6.17, the lowest since May 2020.
Paris-listed shares fell 23.9%. Trading was briefly halted after the initial 14% drop as investors processed the news.
The selloff erased over $5 billion in market value. Shares of Exor, the Agnelli family holding company and largest Stellantis investor, dropped nearly 5%.
Massive Loss and Dividend Cut
Stellantis now expects a net loss between $19 billion and $21 billion for the second half of 2025. The loss is driven primarily by restructuring charges.
The company suspended its 2026 dividend entirely. Management said the move protects the balance sheet during the turnaround.
Most writedowns stem from changes to the product roadmap. The company cited “sharply lower assumptions for EV sales” as the main driver.
Stellantis said it conducted a full review to align strategy with “real-world preferences of its customers.” Buyers simply aren’t purchasing EVs at expected rates.
The charges include $6.5 billion in actual cash outflows over the next four years. That’s real money leaving the company to fund the pivot.
New Bonds and 2026 Guidance
To shore up finances, Stellantis plans to raise up to $5 billion through hybrid bond issuance. The funds will support the restructuring effort.
For 2026, the company expects mid-single-digit revenue growth. The adjusted operating margin should improve by low-single digits.
“The company has taken the vast majority of decisions required to correct direction,” Stellantis stated. That includes “aligning our product plans and portfolio with market demand.”
Market Caught Off Guard
Broker Equita said the writedown came in “well above” initial expectations of $2 billion. The announcement ahead of full-year results surprised investors.
“The bill comes due,” a Milan-based trader said. “The market amplifies everything and it’s been surprised by the announcement.”
Jefferies analyst Philippe Houchois noted Stellantis announced “significantly higher restructuring charges” with “loose 2026 guidance.”
The stock has struggled for years. Italian-listed shares dropped 25% in 2025 after falling 40.5% the previous year. Shares are down over 13% year-to-date in 2026.
Stellantis CEO and CFO will host a call at 1300 GMT Friday to discuss preliminary results. Full-year earnings will be released February 26.
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