Shares in Stellantis (NYSE:STLA) plunged on Friday after the carmaker disclosed that it expects to record around €22.2bn in charges as it scales back parts of its electric vehicle strategy in response to weaker-than-expected demand. The stock was last trading more than 22% lower in Milan.
The group said the bulk of the write-downs relate to revisions to its product roadmap, reflecting materially lower assumptions for future EV sales volumes. As a result of the strategic reset, Stellantis now expects to report a net loss of between €19bn and €21bn in the second half of 2025 and confirmed that dividend payments will be suspended.
“Stellantis today announced that as part of the reset of its business and as it prepares for the communication of its new strategic plan in May of this year, it has conducted a thorough assessment of its strategy and related costs required to align the Company with the real-world preferences of its customers,” the company said in the release.
“The company has taken the vast majority of decisions required to correct direction, particularly related to aligning our product plans and portfolio with market demand,” Stellantis said.
The automaker added that the total charges include approximately €6.5bn of cash outflows expected to be incurred over the next four years. Stellantis said it will publish its final second-half and full-year 2025 results on 26 February.
Alongside the announcement, the group pre-released selected fourth-quarter figures and reiterated that it expects to post a full-year net loss in 2025. This outlook has led to the suspension of its 2026 dividend and plans to raise up to €5bn through the issuance of hybrid bonds to support its balance sheet.
Looking ahead, Stellantis is guiding for mid-single-digit revenue growth in 2026, together with a low-single-digit improvement in adjusted operating margins. Management said the dividend pause and additional financing are intended to preserve financial flexibility, while highlighting restructuring actions taken last year as part of a broader turnaround effort.
Reacting to the update, Jefferies analyst Philippe Houchois noted that Stellantis had “announced significantly higher restructuring charges” and highlighted the group’s “loose 2026 guidance.”
The shares have been under prolonged pressure, with the Italian-listed stock down nearly 25% in 2025 after a 40.5% decline the previous year, and already more than 13% lower so far in 2026.