Stellantis stock collapses as Jeep maker takes $26 billion hit in latest EV pivot
- - Stellantis stock collapses as Jeep maker takes $26 billion hit in latest EV pivot
Pras SubramanianFebruary 6, 2026 at 10:19 PM
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Stellantis (STLA) reported a massive charge of 22 billion euros ($25.94 billion) as it resets its electric vehicle business.
Cash payments of 6.5 billion euros ($7.7 billion) will be paid out over the next four years, and charges totalling 14.7 billion euros ($17.34 billion) will be taken against the company’s 2025 second-half results, Stellantis said. The charges won’t impact Stellantis adjusted operating income, however.
“The charges announced today largely reflect the cost of over-estimating the pace of the energy transition that distanced us from many car buyers’ real-world needs, means and desires,” Stellantis CEO Antonio Filosa said in a statement. “They also reflect the impact of previous poor operational execution, the effects of which are being progressively addressed by our new Team.”
Stellantis stock tumbled as much as 25% Friday, closing down nearly 24%.
"The charges come at a cost, a very needed reset," Filosa added on a conference call with analysts. "It is a strategic, profound, reset."
Cash payments over the next four years are related to canceling certain products as well as some ongoing EV products “whose volumes are now expected to be considerably below prior projections,” Stellantis said.
The biggest chunk of the charges is related to realigning production plans with customer preferences, as well as the impact of new US emissions regulations instituted by the Trump administration, which reflect “significantly reduced expectations for BEV products.”
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Stellantis CEO Antonio Filosa poses by a Jeep Cherokee during media day of the Detroit Auto Show in Detroit, Michigan, U.S. Jan. 14, 2026. REUTERS/Rebecca Cook (REUTERS / Reuters)
These include write-offs for canceled products and impairments to some EV platforms, the company said.
Other charges include changes to the EV supply chain, such as batteries; other non-EV charges, like warranty provisions; and workforce reductions in Europe.
As a result of the losses, Stellantis said it will not issue a dividend, and the board has authorized a 5 billion euro ($5.9 billion) non-convertible bond offering to shore up its financing.
Stellantis’ massive write-off comes after GM (GM) took a cumulative $6.6 billion hit from its EV business in December, which followed Ford’s (F) $19.5 billion charge in the same month.
Looking ahead to 2026, Stellantis projects a mid-single-digit revenue increase, and a AOI margin in low-single-digits. The company will issue full financial results on Feb. 26.
Pras Subramanian is Lead Auto Reporter for Yahoo Finance. You can follow him on X and on Instagram.
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