Shares of Stellantis sank to their lowest level since the company’s formation in 2021 after the automaker disclosed a sweeping strategic reset tied to its second-half 2025 financial outlook. Investors reacted sharply to the announcement, which centers on a €22.2 billion charge reflecting reduced electric vehicle ambitions, restructuring costs, and write-downs tied to shifting market demand.
The stock dropped as much as 30% in European trading, erasing a substantial portion of Stellantis’ market value and marking a significant setback for the world’s fourth-largest automaker. The company also confirmed it will suspend its dividend this year, signaling the depth of the financial impact and the need to preserve cash.
Stellantis now expects a preliminary net loss ranging from €19 billion to €21 billion for the second half of 2025. While most of the €22.2 billion charge will be excluded from adjusted operating income, about €6.5 billion represents cash costs that will be paid over the next four years starting in 2026.
The charges stem from a broad reassessment of long-term assumptions. They include scaled-back commitments across the EV supply chain, updated warranty provisions linked to quality concerns, restructuring expenses tied to previously announced job cuts in Europe, and write-downs related to battery investments that no longer align with current demand trends.
Cash flow remains under pressure as well. Stellantis expects industrial cash burn of €1.4 billion to €1.6 billion in the second half of 2025, reinforcing management’s focus on tighter cost controls and a more conservative capital strategy.
Much of the reset traces back to aggressive targets set under former CEO Carlos Tavares, who departed in late 2024 following a sharp slowdown in U.S. sales. His Dare Forward 2030 plan envisioned electric vehicles accounting for all European sales and half of U.S. sales by the end of the decade. Actual adoption has lagged far behind those projections, particularly in North America.
EVs represented less than one-fifth of European new vehicle sales last year and under 8% in the U.S. That gap has been especially challenging for Stellantis, which relies heavily on North American brands like Jeep and Ram, where buyers continue to favor internal combustion and hybrid trucks and SUVs over battery-electric models.
Current CEO Antonio Filosa acknowledged that earlier assumptions underestimated market resistance and said the company is now refocusing on customer preferences by region. Looking ahead, Stellantis forecasts modest revenue growth in 2026, slim operating margins, and a return to positive industrial free cash flow in 2027 as the reset takes hold.
