Down 20%! Stellantis announces "massive electric vehicle retreat," reports a huge loss of 22 billion

Faced with high costs and sluggish electric vehicle sales, the world’s fourth-largest automaker Stellantis is acknowledging strategic misjudgment with a massive write-down of approximately €22 billion. The automotive giant, which owns 14 brands, announced a comprehensive operational adjustment on Friday, ranging from exiting battery factory joint ventures to halting production of pure electric pickups, marking a substantial retreat from its aggressive electrification plans.

According to Bloomberg, Stellantis expects a net loss of up to €21 billion in the second half of 2025, with an operating profit margin for the full year in the low single digits, and will cancel this year’s dividend payout. This impairment includes about €6.5 billion in cash payments, mainly to suppliers, which will be recorded in the second half of fiscal 2025 but will not affect adjusted operating income.

“These changes largely reflect the cost of overestimating the pace of energy transition,” CEO Antonio Filosa said in a statement. He attributed the write-down to “the impact of poor operational execution earlier, which our new team is gradually addressing.”

Following the announcement, Stellantis’s stock price plummeted by 19%, with the scale of the write-down exceeding analyst expectations. The stock has fallen more than 40% over the past year.

Electrification Strategy Fully Shrinks

Stellantis is systematically scaling back its electric vehicle business. The company announced it will exit its joint venture with South Korean battery manufacturer LG Energy Solution Ltd. in Canada, with LG acquiring its stake. In 2022, Stellantis had announced plans to jointly invest over CAD 5 billion (USD 3.7 billion) in Windsor, Ontario, to build its first large-scale EV battery plant.

In terms of product lineup, the company has phased out several pure electric models, including ceasing production of the RAM 1500 electric pickup in the U.S., and has delayed its Alfa Romeo EV project in Europe. This contrasts sharply with the aggressive targets set by former CEO Carlos Tavares—who promised to sell only electric vehicles in Europe by 2030 and to reach a 50% EV sales share in the U.S.

As part of the strategic shift, Filosa also decided to abandon some investment projects, including a planned hydrogen energy joint venture.

Stellantis is not the only automaker facing a slowdown in EV demand. Bloomberg reports that Ford Motor announced in December last year it would incur $19.5 billion in costs due to adjustments in its EV business; General Motors’ write-downs have ballooned to $7.6 billion; Porsche revised down its earnings outlook four times last year due to its EV strategy adjustments.

This wave of impairments highlights the common difficulties traditional automakers face in the EV transition: on one hand, massive investments are needed to build capacity and supply chains; on the other, consumer acceptance has been lower than expected, delaying returns on investment.

Financial Pressure and Fundraising

In addition to the €21 billion net loss forecast, Stellantis’s operating profit margin this year is also under pressure from tariff costs. The company expects a low single-digit operating profit margin for the full year, including approximately €1.6 billion in tariff-related expenses.

To strengthen its balance sheet, Stellantis plans to issue up to €5 billion in bonds. This is a financial rescue measure after the company experienced severe market share loss—during the tenure of the previous CEO, customers left due to rising vehicle prices, product gaps, and quality issues.

The company is scheduled to release detailed full-year financial results on February 26 and plans to present its strategic plan to investors in May.

Since taking over in June last year, Filosa has been implementing a comprehensive overhaul of this 14-brand automaker, aiming to regain market share while scaling back EV ambitions and addressing U.S. tariff costs. In the U.S., a key profit market, Filosa has pledged to invest $13 billion, re-enable V8 engines, and delay EV projects. He is also competing for market share through significant price cuts.

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