TLDR
- Stellantis crashes 27% after $26B reset and EV strategy pivot
- $26B charge wipes confidence as Stellantis halts dividend
- Stellantis dumps battery venture, warns of 2025 loss
- EV slowdown forces Stellantis into massive reset
- Stellantis shock reset triggers worst selloff in years
Stellantis shares fell sharply on Friday after the automaker confirmed a $26 billion charge tied to a broad operational reset. The stock dropped about 27% as markets reacted to the scale of the writedown and the shift in strategic plans. The selloff followed new disclosures about suspended payouts, reduced guidance, and a major exit from a Canadian battery venture.
Massive Charge Reshapes Financial Outlook
Stellantis recorded the charge after restructuring actions across product development, manufacturing, and its electrification roadmap. The company projected a net loss for 2025 and paused its 2026 dividend to protect its balance sheet. It also prepared to issue up to €5 billion in hybrid bonds to reinforce liquidity.
The automaker targeted modest revenue growth in 2026 as it recalibrated to slower EV demand across core regions. It expected a low-single-digit margin increase while adjusting its product mix and manufacturing footprint. The guidance reflected new operating assumptions shaped by slower adoption and reduced pricing power.
Management confirmed that the reset followed years of weaker performance across major markets. Executives highlighted actions taken in 2025 to rebuild sales momentum and streamline global operations. They noted improved U.S. market share and a stable position in Europe despite the financial impact.
Battery-Plant Exit Marks Major Shift in Strategy
Stellantis sold its 49% stake in the NextStar Energy battery plant to LG Energy Solution for $100 after writing down its investment. The facility represented a central part of its earlier EV strategy but later moved toward grid-storage production. The exit signaled a pivot toward more flexible supply arrangements that matched revised EV targets.
The plant remained operational under full LG control and continued supplying Stellantis under existing arrangements. LG planned to expand its customer base and broaden output beyond the joint venture’s original scope. The shift aligned with LG’s long-term strategy and diversified revenue approach.
The restructuring followed high EV-related charges recently reported by Ford and General Motors. The sector continued adjusting to softer North American EV demand and rising cost pressures. Automakers also rebalanced production commitments as battery economics evolved.
Market Pressure Builds as Stellantis Reworks EV Plans
Stellantis adjusted its electric-vehicle timetable to match real demand trends across major markets. The company planned to maintain EV development leadership while moving at a more measured adoption pace. This shift followed disappointing sales in North America and Canada.
The automaker emphasized a renewed focus on execution after leadership changes and repeated earnings setbacks. It reworked global manufacturing systems and updated quality controls to strengthen future output. The company also canceled unprofitable programs to reduce long-term cost burdens.
Stellantis aimed to present its updated long-term strategy at its May Capital Markets Day. The announcement was expected to outline revised EV goals and regional priorities. Market reaction suggested significant interest in how the company planned to regain momentum.
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