TLDR
- Stellantis shares tanked over 22% Friday following a $26.5 billion writedown announcement related to its EV strategy.
- The automaker projects a $19-21 billion net loss for the second half of 2025.
- Dividend payments for 2026 have been suspended to protect the balance sheet.
- The company plans to raise $5 billion through hybrid bonds while guiding for modest 2026 growth.
- Management will discuss preliminary results in a Friday call with full earnings due February 26.
Stellantis shares experienced their biggest single-day drop in company history Friday. The stock plunged more than 22% following news of a massive $26.5 billion writedown.
The Franco-Italian automaker blamed the charges on scaling back its electric vehicle strategy. Milan shares bottomed at €6.17, matching lows not seen since May 2020.
Paris-listed shares declined 23.9%. Trading halted temporarily after an initial 14% plunge as the market digested the announcement.
More than $5 billion in market capitalization evaporated in a single session. Exor, the Agnelli family investment vehicle and top shareholder, fell 5% in Amsterdam trading.
Billions in Losses Expected
Stellantis forecasts a net loss ranging from $19 billion to $21 billion for the second half of 2025. The deficit is primarily attributable to restructuring expenses.
The company axed its 2026 dividend completely. Leadership cited balance sheet protection as the reason for the suspension.
The bulk of writedowns trace back to product roadmap changes. Stellantis pointed to “sharply lower assumptions for EV sales” driving the decision.
The company said it aligned its strategy with “real-world preferences of its customers.” Electric vehicle demand hasn’t materialized as originally projected.
Approximately $6.5 billion in cash will flow out over the next four years. These are direct costs associated with the strategic pivot.
Financing and Future Outlook
Stellantis intends to issue up to $5 billion in hybrid bonds. The capital raise will fund ongoing restructuring efforts.
The company provided 2026 guidance calling for mid-single-digit revenue growth. Adjusted operating margins should expand by low-single digits.
“The company has taken the vast majority of decisions required to correct direction,” Stellantis announced. Management emphasized “aligning our product plans and portfolio with market demand.”
Analysts Stunned by Scale
Broker Equita called the writedown “well above” its $2 billion estimate. The timing of the disclosure, ahead of scheduled earnings, amplified market reaction.
A Milan trader observed that “the bill comes due” and noted investors were “surprised by the announcement of these data outside of the expected release.”
Jefferies analyst Philippe Houchois pointed out the company revealed “significantly higher restructuring charges” alongside “loose 2026 guidance.”
Stellantis shares have been in a prolonged decline. Italian-listed shares fell 25% in 2025 after a 40.5% drop the prior year. The stock is down more than 13% in 2026 alone.
The CEO and CFO will address investors at 1300 GMT Friday to elaborate on preliminary figures. Complete full-year results are scheduled for release on February 26.
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