US EditionStellantis Shares Fall After Automaker Reports $26 Billion Hit from Business Overhaul
Stellantis wrote down $26 billion due to overestimated EV demand and strategic shifts, joining others in the industry facing costly EV market adjustments, CEO Filosa 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.
125 Articles
125 Articles
Stellantis would rather fail by 22 billion euros than continue trying to make electric cars. It is not the first car manufacturer to calculate the demand for electric cars, but it was still punished badly by investors.
Stellantis plunges on $27b bill for EV pullback
Stellantis announced 22.2 billion euros ($26.5 billion) of charges on Friday as it scales back its electric-vehicle ambitions, hammering its shares as traditional automakers pay the price of misjudging the switch to cleaner driving. The move is the biggest in a series of writedowns, including at Ford and General Motors, as some automakers pull back from EVs in response to the Trump administration rolling back subsidies and weaker-than-expected d…
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…
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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.
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