Stellantis takes US$26.5bn writedown in EV retreat

Stellantis announced US$26.5bn in charges on Friday as it attempts a major scaling back of its electric vehicle (EV) ambitions, hammering shares as automakers pay the price of misjudging government policy reliability and mass market demand. Milan-listed shares in the automaker crumbled 19% in early trading following the announcement.

The charges will be booked in its results for H2 2025 and include cash payments of approximately US$6.5bn, expected to be made over the next four years. Stellantis now expects a preliminary—and punishing—loss of between US$19bn and US$21bn in the second half and as such will not be paying out any dividends this year. The group will issue up to US$5bn in non-convertible bonds to preserve approximately US$46bn of available liquidity.

‘The charges announced today largely reflect the cost of over-estimating the pace of the energy transition that distanced us from many car buyers’ real-world needs, means and desires,” said Chief Executive Antonio Filosa in a statement. “They also reflect the impact of previous poor operational execution, the effects of which are being progressively addressed by our new team.” Filosa appeared to pin the blame on former Chief Executive Carlos Tavares, who departed the company in late 2024 after mounting backlash. He made no mention of US policy; specifically the elimination of federal EV tax credits that sent domestic EV sales into a tailspin in October 2025.

Almost US$15bn of the charges relate to adapting its product development plans to the resulting changes in US customers expectations—not to mention softened emissions rules—both of which have significantly reduced its expectations for EVs. Stellantis has cancelled a number of EV projects including the Ram 1500, an electric truck it had claimed was “set to push boundaries” of electrification. Sales of EVs in Europe have soared, even selling petrol cars for the first time in December 2025. This was due in no small part to the continued availability (by and large) of purchasing incentives, and the steady introduction of Chinese brands into regional markets. 

Stellantis is the final automaker among the Detroit Three to announce major EV writedowns, and the one recording the steepest loss. Ford, by contrast, announced its US$19.5bn charge in December 2025, reflecting the cancellation of several planned models including a high-profile three-row SUV and killing off former flagship, the F-150 Lightning, in favour of extended-range EVs using internal combustion engines as generators. Meanwhile, General Motors reported approximately US$7.6bn in charges throughout late 2025, involving US$3bn in asset devaluations and over US$4bn in cash costs to cancel supplier contracts, primarily for batteries.

The Italian-French-American group also agreed on 5 February to sell its 49% stake in its Canadian EV battery joint venture to partner LG Energy Solution. Stellantis, which will present its new business plan in May 2026, said it has already taken the vast majority of decisions required to correct its direction, and steer its business back onto a more profitable course. Whether this strategic pivot away from EVs will sustain it into the medium- and long-term, however, is less apparent.