US EditionStellantis Shares Fall After Automaker Reports $26 Billion Hit from Business Overhaul
Stellantis reports a €22 billion charge due to overestimating electric vehicle demand and shifts in emissions policies, causing shares to plunge over 20%, analysts said.
- Taking a 22 billion euro charge, Stellantis announced Friday it will scale back its electric vehicle emphasis and broaden its hybrids and internal combustion engine vehicles offerings.
- Policy shifts including eased emissions targets and subsidy cuts led to demand reduction, and Stellantis officials said the charges reflect over-estimating the energy transition and a mismatch with many buyers' needs.
- Market reaction was swift as Stellantis shares plunged nearly 23 percent Friday and have lost roughly three-fourths of their value since March 2024, despite Filosa's vow to make strategic changes.
- Oddo BhF analysts said they expected a 7 billion euro write-down but called the scope beyond cautious expectations, while investors punished the stock Friday with a nearly 23 percent plunge.
- Despite a recent $26 billion write-down, Stellantis had announced a $13 billion U.S. investment plan, highlighting a strategic reversal amid industry-wide EV challenges.
106 Articles
106 Articles
The $26.5 Billion Dollar Reason Why Jeep-Maker Stellantis's Stock is Sliding Downhill Today
Key PointsStellantis announced on Friday that it will take $26.5 billion in charges.Most of the charges relate to cancelled or downsized plans for electric vehicles. Shares were hit hard in Friday trading. 10 stocks we like better than Stellantis › Shares of Stellantis (NYSE: STLA), the global automotive giant that owns former Chrysler brands like Jeep and Ram, fell sharply on Friday after the company announced massive write-offs amid lower-than…
Fox Business
The New York LedgerStellantis takes massive $26B hit after moving away from EVs
Stellantis takes a $26.5 billion charge as the automaker cuts electric vehicle production after misjudging consumer demand. The company joins Ford and GM in EV financial hits.
The EV retreat deepens with $26 billion write-down from Jeep-maker Stellantis
Jeep-maker Stellantis has been re-evaluating its EV lineup. The change of plans will cost the company $26 billion.: Jim West/UCG/Universal Images Group via Getty ImagesStellantis just announced a $26 billion charge as it resets its EV strategy — the latest in a four-month trend.Ford, GM, and Volkswagen announced similar multibillion write-downs as US EV demand cools.Investors punished the stock, sending shares down more than 25% on Friday mornin…
Stellantis shares plunge on $26 billion charges from EV retreat
Stellantis shares suffered a record drop after the automaker announced it is taking more than $26 billion in charges to reverse course on its electric vehicle strategy. The company said in a press release that the write-off is mainly due to a reduction in electric vehicle demand resulting from “re-aligning product plans with customer preferences and new emission regulations in the US.” The cost of the automaker’s “reset” of its business is also …
Coverage Details
Bias Distribution
- 53% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
