Stellantis to book €22 billion hit as it scales back EV strategy

Global automaker Stellantis saw its shares plunge more than 22% in Milan and New York on February 6, 2026, after announcing it would take approximately €22.2 billion in asset write-downs and charges due to a drastic scale-back of its electric vehicle (EV) strategy. The company cited a significant cooling in consumer demand for EVs as the primary driver for this strategic pivot, forcing a massive overhaul of its product roadmap to better align with current market preferences. This financial hit is expected to result in a staggering net loss of between €19 billion and €21 billion for the second half of 2025. In addition to the massive write-downs, Stellantis leadership confirmed the suspension of dividend payments for 2026 and revealed plans to raise up to €5 billion through the issuance of hybrid bonds to stabilize its balance sheet. The company explained that the €22.2 billion charge includes roughly €6.5 billion in expected cash outflows over the next four years. This aggressive 'reset' is part of a broader corrective measure intended to prepare the organization for a new strategic plan scheduled for a full unveiling in May 2024, focusing on more traditional and hybrid powertrains that consumers are currently favoring over pure battery-electric models. Market analysts, including those from Jefferies, noted that the restructuring charges were significantly higher than anticipated, casting a shadow over the company's 2026 guidance. While management is forecasting mid-single-digit revenue growth and a slight improvement in operating margins for the coming year, the stock remains under intense pressure. This latest valuation drop follows a difficult multi-year period for the automaker, whose Italian-listed shares had already declined by nearly 25% in 2025 and 40% the year prior, reflecting broader industry struggles with the transition to green energy in a high-cost environment.