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

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

#Stellantis #EV strategy #write-downs #net loss #dividend suspension #Milan stock exchange #market demand #restructuring

📌 Key Takeaways

  • Stellantis shares plummeted 22% following the announcement of a €22.2 billion charge related to its EV strategy pivot.
  • The company expects a net loss of up to €21 billion for the second half of 2025 due to cooling EV demand.
  • Dividend payments for 2026 have been suspended, and the firm plans to raise €5 billion via hybrid bonds.
  • A new strategic business plan is set to be communicated in May 2026 to realign the portfolio with market preferences.

📖 Full Retelling

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.

🐦 Character Reactions (Tweets)

Carl V. Recycle

Stellantis just took their EV strategy and reduced it to a 'plug-in hybrid' situation. At this rate, the only thing shocking will be their profit margins! #EV #FinancialElectrocution

Hugh Mungus

So Stellantis went from 'We’re the future!' to 'Can we get a time machine?' in just under a year. They really nailed that detox from EVs! #BackToTheFuture

Ella Gant

Stellantis announced they’re raising €5 billion through hybrid bonds. So... we're getting hybrid debt too? Because who wouldn’t want a mix of old and new worries! #DebtOnWheels

Wattson Static

Looks like Stellantis just took a €22 billion trip to the ‘Escape EVs’ resort. Better pack some traditional engines! #EVsAreSoLastYear

💬 Character Dialogue

lady_dimitrescu: Ah, the mortals at Stellantis have decided to abandon their flimsy electric dreams? How quaint. One would think they’d realize that true power lies in the hands of aristocrats!
glados: It’s quite hilarious, really. Did they truly believe the common folk would trade in their beloved gasoline guzzlers for a soulless electric chair? How genuinely laughable.
scorpion: Get over here! A company that retreats into the shadows when faced with demand? Pathetic! Honor in battle means standing and fighting.
lady_dimitrescu: Ah, Скорпіон, how delightful! Perhaps you should remind them that honor is in the execution of their strategy, not its cowardly abandonment!
glados: Indeed! But be careful, Скорпіон. I hear vengeance doesn’t translate well to balance sheets—or dividends for that matter.

🏷️ Themes

Automotive Industry, Electric Vehicles, Corporate Finance

📚 Related People & Topics

Borsa Italiana

Borsa Italiana

Italian stock exchange

Borsa Italiana (English: Italian Stock Exchange) or Borsa di Milano (English: Milan Stock Exchange), based in Milan at Mezzanotte Palace, is the Italian stock exchange. It manages and organises domestic market, regulating procedures for admission and listing of companies and intermediaries and super...

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Stellantis

Stellantis

Multinational automotive car manufacturing corporation

Stellantis N.V. is a multinational automotive manufacturing corporation formed in 2021 through the merger of the French PSA Group and Fiat Chrysler Automobiles (FCA), which was itself created by the merger of Italy's Fiat and the US-based Chrysler, completed in stages between 2009 and 2014. Stellant...

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📄 Original Source Content
try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Amazon stock slides 9% premarket as 2026 capex guidance blows past expectations Gold, silver prices log shaky gains after bruising week Amazon’s capex plans, Stellantis, Bitcoin’s fall - what’s moving markets 3 reasons why Bitcoin is falling (South Africa Philippines Nigeria) Stellantis nosedives 22% after flagging €22 bln hit from EV strategy scale-back Author Vahid Karaahmetovic Stock Markets Published 02/06/2026, 02:45 AM Updated 02/06/2026, 04:24 AM Stellantis nosedives 22% after flagging €22 bln hit from EV strategy scale-back 3 STLAM -22.52% Investing.com -- Shares in Stellantis (BIT:STLAM) (NYSE:STLA) nosedived on Friday after the automaker said it will take roughly 22.2 billion euros in charges as it pivots away from electric vehicles amid soft demand. The stock fell sharply and was last down more than 22% in Milan trading. Get timely alerts for market-moving news with InvestingPro The automaker said most of the write-downs stem from changes to its product roadmap, reflecting sharply lower assumptions for EV sales. Following the overhaul, the company expects to post a net loss of between 19 billion and 21 billion euros in the second half of 2025 and announced it will halt dividend payments. "Stellantis today announced that as part of the reset of its business and as it prepares for the communication of its new strategic plan in May of this year, it has conducted a thorough assessment of its strategy and related costs required to align the Company with the real-world preferences of its customers," the company said in the release. "The company has taken the vast majority of decisions required to correct direction, particularly related to aligning our product plans and portfolio with market demand," Stellantis said. Stellantis said the charges include about 6.5 billion euros in cash outflows expected over the next four years. The automaker said that it will publish its final second-half and full-year 202...

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