Stellantis (STLA) Stock Slumps Over 20% After €22B Charges and EV Pullback

Stellantis shares experienced their largest single-day decline on record Friday, plummeting over 20% after the automaker announced approximately €22 billion ($26 billion) in charges related to a major business restructuring. The writedown, primarily linked to scaling back electric vehicle ambitions and realigning with consumer preferences, caught investors off guard with its magnitude, far exceeding the charges announced by competitors Ford ($19.5 billion) and GM ($7.6 billion).

As of 8:30 AM EST, Stellantis shares traded at $7.26, down $2.28 (-23.95%) in premarket trading, with Milan-listed shares dropping to their lowest levels since May 2020.

€22B Charge Sparks Record Selloff

The €22.2 billion charge breaks down into several components, with the largest portion, €14.7 billion ($17.3 billion), related to realigning product plans with consumer preferences and new U.S. emission regulations. Additional charges include €2.1 billion ($2.5 billion) for resizing the EV supply chain, €4.1 billion ($4.8 billion) in warranty costs, and €1.3 billion ($1.5 billion) for restructuring European operations.

The announcement represents a strategic reset for the automaker, which has struggled with declining market share in recent years.

The market reaction was severe, with Stellantis shares falling as much as 24% to €6.17 in Milan trading, hovering near their lowest price since May 2020. Paris-listed shares also dropped 23.9%. The losses wiped more than €5 billion from Stellantis’ market capitalization, according to LSEG data. Broker Equita noted the writedown was “well above” initial expectations of more than €2 billion, contributing to the sharp sell-off.

Stellantis also canceled its dividend for 2026 and issued a €5 billion non-convertible hybrid bond to stabilize finances. The company anticipates a net loss for 2025, with 2026 guidance targeting only a mid-single-digit percentage increase in net revenue and a low-single-digit increase in adjusted operating income margin.

RBC Capital Markets analyst Tom Narayan characterized Stellantis as “a show-me-story” given substantial U.S. market share losses due to high pricing and perceived lack of product investment.

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CEO Commits to Staying Together Amid Breakup Speculation

CEO Antonio Filosa moved quickly to address market speculation about a potential company split, stating during a media call that Stellantis plans to move forward as one unified company. “Stellantis is a very strong global company that is very proud to have very deep regional groups,” Filosa said. “It makes all of sense to stay together. We want to stay together for many years to come.”

His comments come amid questions about whether the automaker would be better off selling brands or splitting up its vast portfolio of 14 automotive brands.

Filosa described the charges as “an important strategic reset of our business model, with the only intention to put our customer preferences back at the center of what we do globally and in each regions.”

The restructuring includes pulling back on electrification plans and reintroducing V8 engines to U.S. models, marking a significant shift from the aggressive EV strategy pursued under former CEO Carlos Tavares. Filosa said the company’s “mission is to grow” after notable declines in market share, though he did not specifically rule out regionally refocusing or shrinking the brand portfolio.

The challenges facing Stellantis are substantial. Global sales fell 12.3% from 6.5 million vehicles in 2021, the year the company was formed through the merger of Fiat Chrysler and Groupe PSA, to 5.7 million in 2024.

U.S. sales collapsed approximately 27% during that period to 1.3 million vehicles, with the automaker dropping from fourth to sixth place in U.S. market share, falling from 11.6% to 8%. Filosa promised additional information about the company’s forward plans at a May 21 investor day.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.