Stellantis nosedives 22% after flagging €22 bln hit from EV strategy scale-back

Investing.com -- Shares in Stellantis (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 (EVs) amid soft demand.

The stock fell sharply and was last down more than 22% in Milan trading.

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 2025 results on February 26.

Stellantis also pre-released some earnings for the fourth quarter, saying it expects to post a net loss for 2025, prompting the suspension of its 2026 dividend and plans to raise up to 5 billion euros through hybrid bond issuance.

Looking ahead, the automaker is guiding for mid-single-digit revenue growth in 2026, alongside a low-single-digit improvement in its adjusted operating margin. Management said the dividend pause and new financing are aimed at protecting the balance sheet, while pointing to restructuring steps taken last year as part of its broader reset strategy.

Commenting on the news, Jefferies analyst Philippe Houchois highlighted that Stellantis "announced significantly higher restructuring charges" and "loose 2026 guidance."

Stellantis stock has been under sustained pressure, with Italian-listed shares falling nearly 25% last year after a 40.5% drop the year before, and down more than 13% so far in 2026.

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