Stellantis Announces $26.5 Billion Write-Off
Stellantis (NYSE: STLA) reported a substantial $26.5 billion charge on Friday, primarily due to the cancellation and downsizing of electric vehicle (EV) plans. The company’s U.S. shares plummeted approximately 24.5% in trading following the announcement, reflecting investor concerns over lower-than-expected demand for its EV models.
The charges break down to 14.7 billion euros for product-plan adjustments, which include write-offs for underperforming models, 2.1 billion euros related to reduced investment in EV supply chain and battery manufacturing, and 5.4 billion euros for miscellaneous quality-related costs. Additionally, Stellantis anticipates an operating loss of 1.2 to 1.5 billion euros for the second half of 2025, prompting the suspension of dividend payments.
As it faces challenges similar to competitors like Ford and General Motors, Stellantis’s adjustments have proven costlier, highlighting a critical shift in the EV market landscape.
