The Stellantis logo is pictured at one of its assembly plants following a company’s announcement that it would suspend production there, in Toluca, State of Mexico, Mexico, April 4, 2025.
Henri Romero | Reuters
Automaker Stocks Stellantis plunged 27% in European trading on Friday, after the company said it expected to suffer a loss of 22 billion euros ($26 billion) following a reset of its business and hinted at a pullback from its electrification efforts.
In Milan, the company’s Italian shares fell 25% on Friday. On Wall Street, the transatlantic company listed in New York action fell 23%.
Other French automobile stocks also fell on Friday morning, with Valeo And Forvia both down more than 1.2% and Renault sliding by 2%.
“The tariffs announced today largely reflect the cost of overestimating the pace of the energy transition that has moved us away from the real needs, means and desires of many car buyers,” Stellantis CEO Antonio Filosa said in a statement.
“They also reflect the impact of previous poor operational execution, the effects of which are gradually being addressed by our new team.”
Going forward, Stellantis said it would remain at the forefront of electric vehicle development, but said its own electrification journey would continue at “a pace that must be driven by demand rather than command.”
Stellantis also released some fourth-quarter figures on Friday, saying it expects a net loss for 2025. In recognition of the net loss, it has suspended its dividend for 2026 and plans to raise up to €5 billion by issuing hybrid bonds.
For 2026, the auto giant is targeting a mid-single-digit increase in net sales and a low-single-digit increase in adjusted operating margin.
The company said suspending dividends and issuing bonds would help preserve its balance sheet, and outlined steps it took last year as part of its reset strategy.
These included announcing “the largest investment in Stellantis’s history in the United States” – totaling $13 billion over four years – as well as the launch of 10 new products, the cancellation of products that could not generate profits at scale, and the restructuring of its global manufacturing and quality management capabilities.
As part of the US investment drive, the transatlantic automaker announced it would create 5,000 jobs in its US workforce.
Although these measures resulted in costs of €22.2 billion, the company said they had collectively managed to return to positive volume growth in 2025.
During the second half of the year, Stellantis’ market share in the United States reached 7.9%, while the company said it retained its second place overall in terms of market share in wider Europe.
Stellantis’ writedown follows multibillion-dollar losses against rivals Ford and GM, which recently announced their own losses worth $19.5 billion and $7.1 billion, respectively – both linked to the decline in electric vehicles.
Given the “scale of the sinking” and weak forecasts for 2026, UBS analysts said a negative stock price reaction was expected. They added, however, that the “decisive” cleanup by new management and strong regional market fundamentals make the stock attractive as a potential “comeback” play in the United States.
“Year of execution”
Friday’s writedown announcement came alongside news that Stellantis would shed its stake in NextStar Energy, a joint venture with LG Energy Solution that built and operated a Canadian battery manufacturing plant. LG Energy Solution will take over Stellantis’ 49% stake, the companies announced Friday morning.
The joint venture was part of Stellantis’ broader electrification strategy. In 2022, former CEO Carlos Tavares set a goal that 100% of sales in Europe and 50% of sales in the United States would be battery electric vehicles by the end of the decade.
The company is expected to present an updated long-term strategy at its capital markets day in May.
Stellantis shares have been under pressure for some time, with Italian shares falling almost 25% last year and 40.5% the year before. Shares are currently down more than 13% since the start of 2026.
Stellantis stock price
Filosa previously dubbed 2026 “the year of execution” for the struggling automaker, which has struggled for several years with declining sales, management changes and disappointing profits. In July, the company said it expected to suffer a tariff cut of around 1.5 billion euros in 2025, after reporting a net loss of 2.3 billion euros in the first half.
In a note on Friday, Russ Mould, chief investment officer at AJ Bell, said Stellantis had placed a “miscalculated bet” on electric vehicles – but said the broader picture of electric vehicle adoption raised questions about Stellantis’ marketability.
“The long-standing argument for why many drivers don’t want to go electric yet is concerns about price, access to charging infrastructure and how long a battery lasts during their journey,” he said.
“However, prices are falling, more chargers are being installed, and battery range is improving. The success of companies like BYD suggests that many people are willing to take the plunge. This raises the question of whether Stellantis’ frustration with its electric vehicle sales is related to market issues or that drivers simply don’t like its vehicles.”
Stellantis is expected to release its full 2025 results on February 26.