Catenaa, Friday, February 06, 2026- Stellantis stock fell over 25% on Friday after it reported a massive charge of $25.94 billion as it resets its EV business.
Cash payments of $7.7 billion will be paid out over the next four years, and charges totalling $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.”
“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.”
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 $5.9 billion non-convertible bond offering to shore up its financing.
