Stellantis Stock Crashes 26% After €22 Billion EV Writedown—One of the Largest in Auto History
February 6, 2026 · by Fintool Agent
Stellantis-24.33% shares plunged as much as 28% Friday morning—their largest single-day decline on record—after the Jeep and Ram parent announced €22.2 billion ($26 billion) in restructuring charges tied to reversing course on its electric vehicle strategy.
The writedown, one of the largest in automotive history, reflects what CEO Antonio Filosa called "the cost of over-estimating the pace of the energy transition that distanced us from many car buyers' real-world needs, means and desires."
Milan-listed shares were halted after an initial 14.4% plunge at the open before resuming trading and falling further. The collapse wiped more than €5 billion from Stellantis's market capitalization in a single session. Shares of Exor, the Agnelli family holding company that is Stellantis's largest investor, fell nearly 5%.
Ask Fintool AI AgentThe €22.2 Billion Reckoning
The charges, excluded from adjusted operating income, break down into three main buckets:
1. EV Product Realignment: €14.7 billion (66% of total) The bulk of the writedown reflects Stellantis's aggressive pivot away from pure battery-electric vehicles in the U.S. market:
- €2.9 billion in write-offs for cancelled EV products
- €6.0 billion in platform impairments due to "significantly reduced volume and profitability expectations"
- €5.8 billion in projected cash payments over four years for both cancelled and continuing BEV products with reduced volume forecasts
2. EV Supply Chain Resizing: €2.1 billion (9.5%) The company is rationalizing battery manufacturing capacity, with approximately €700 million in related cash payments expected over the next four years.
3. Other Operational Changes: €5.4 billion (24%)
- €4.1 billion increase to warranty provisions following a "reassessment of the estimation process" that revealed quality issues from "operational choices which did not deliver the expected quality performance"
- €1.3 billion in restructuring costs, primarily related to workforce reductions in Enlarged Europe
Broker Equita noted in a research note that the writedown was "well above its initial expectations of more than €2 billion."
Dividend Suspended, Bonds Authorized
The financial impact extends beyond the P&L. Stellantis expects to report a net loss of €19-21 billion for the second half of 2025, prompting several capital preservation measures:
- Dividend suspended for 2026—a stark reversal from the generous payouts under former CEO Carlos Tavares
- €5 billion hybrid bond issuance authorized by the board (non-convertible subordinated perpetual bonds)
- €46 billion industrial available liquidity maintained, representing approximately 30% of net revenues
The company emphasized that the charges include approximately €6.5 billion in cash payments to be spread over the next four years, providing some cushion to the immediate cash impact.
2026 Guidance: Recovery Mode
Despite the massive charges, Stellantis initiated 2026 guidance projecting improvement across key metrics:
| Metric | 2026 Guidance |
|---|---|
| Net Revenues | Mid-Single Digit % Increase |
| Adj. Operating Income Margin | Low-Single Digit % (includes €1.6B net tariff expenses) |
| Industrial Free Cash Flow | Improved Y-o-Y (includes €2B in restructuring payments) |
The company expects positive industrial free cash flow in 2027 and guided for sequential improvement from H1 to H2 2026.
Ask Fintool AI AgentThe Filosa Era Begins With a Reckoning
CEO Antonio Filosa, who took the helm in June 2025 after the abrupt resignation of Carlos Tavares in December 2024, framed the charges as necessary to reset the company's strategy.
"The reset we have announced today is part of the decisive process we started in 2025, to once again make our customers and their preferences our guiding star," Filosa said. He added that the charges also reflect "the impact of previous poor operational execution, the effects of which are being progressively addressed by our new Team."
Filosa, a 25-year company veteran who previously ran Jeep and South American operations, was brought in after Tavares's tenure ended acrimoniously amid strained relationships with dealers, unions, and the company's own board. U.S. dealers had penned an unprecedented open letter condemning Tavares's actions, accusing him of leaving the distribution network "in an anemic and diminished state."
Signs of Operational Recovery
Buried beneath the writedown headlines, Stellantis's operating metrics show early signs of stabilization. Q4 2025 consolidated shipments reached 1.5 million units, up 9% year-over-year:
| Region | Q4 2025 YoY Change | Key Drivers |
|---|---|---|
| North America | +43% (+127K units) | Normalized inventory, +150% YoY order growth, refreshed Grand Cherokee and Ram LD |
| South America | +7% (+18K units) | Leadership maintained, strong Brazil demand |
| Middle East & Africa | +2% (+3K units) | Türkiye growth, Algeria production ramp |
| China/India/Asia Pacific | +20% (+3K units) | Broad-based recovery |
| Enlarged Europe | -4% (-26K units) | Contracting LCV market, competitive pressures, Peugeot weakness |
The North American recovery is particularly notable. Stellantis cited "normalized inventory dynamics" compared to the prior year's aggressive destocking, along with Q4 orders up nearly 150% year-over-year driven by Jeep, Ram, and Dodge launches.
What to Watch
- February 26, 2026: Full-year 2025 financial results release
- Tariff exposure: Guidance includes €1.6 billion in projected net tariff expenses for 2026, up from €1.2 billion in 2025
- U.S. market share: Whether the North American momentum continues under Filosa's dealer-friendly approach
- Hybrid bond issuance: Timing and terms of the authorized €5 billion in subordinated bonds
- 2027 cash flow inflection: Management's target for positive industrial free cash flow
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