Plunging 20%! Stellantis announces "mass withdrawal from electric vehicles," recording a huge loss of 22 billion.

Facing high costs and sluggish electric vehicle sales, Stellantis, the world’s fourth-largest automaker, is admitting to a strategic misjudgment with a massive write-down of around 22 billion euros. On Friday, the automotive giant with 14 brands announced a comprehensive adjustment of its operating strategy, ranging from exiting joint battery factory ventures to ending production of all-electric pickups, marking a substantial retreat from its aggressive electrification plan.

According to Bloomberg, Stellantis expects net losses of up to 21 billion euros in the second half of 2025, with a full-year operating profit margin only in the low single digits, and will cancel this year’s dividend payout. The write-down includes about 6.5 billion euros in cash payments, primarily to compensate suppliers; these costs will be recognized in the second half of fiscal 2025, but will not affect adjusted operating income.

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

After the announcement, Stellantis shares plunged as much as 19%, with the scale of the write-down exceeding analyst expectations. The stock has already dropped more than 40% over the past year.

Comprehensive Contraction of Electrification Strategy

Stellantis is systematically cutting back its electric vehicle business footprint. The company announced it would exit its joint venture with Korean battery manufacturer LG Energy Solution Ltd. in Canada, selling its stake to LG. In 2022, Stellantis said it would jointly invest over 5 billion Canadian dollars (3.7 billion USD) with LG Energy to build its first major EV battery plant in Windsor, Ontario.

On the product side, the company has eliminated several pure electric models, including discontinuing the RAM 1500 electric pickup in the US market and delaying Alfa Romeo’s EV projects in Europe. This stands in stark contrast to former CEO Carlos Tavares’s radical goals—Tavares had pledged to sell only electric vehicles in Europe by 2030, with EVs making up 50% of sales in the US market.

As part of this strategic shift, Filosa also decided to scrap certain investment projects, including a planned hydrogen energy joint venture.

Stellantis is not alone in paying the price for slowing electric vehicle demand. According to Bloomberg, Ford stated last December that it would incur $19.5 billion in expenses from its EV business adjustment; General Motors’ write-downs have swelled to $7.6 billion; Porsche revised its performance outlook downwards four times last year due to corrections in its EV strategy.

This wave of write-downs highlights the common dilemma traditional carmakers face in the transition to electrification: on one hand, they must invest massive sums to build capacity and supply chains; on the other, consumer acceptance is lower than expected, leading to a prolonged payback period.

Financial Pressure and Fundraising

Beyond the expected net loss of 21 billion euros, Stellantis this year also faces profit margin erosion from tariff costs. The company forecasts that its full-year operating profit margin in the low single digits, includes about 1.6 billion euros in tariff-related expenses.

To strengthen its balance sheet, Stellantis plans to issue up to 5 billion euros in bonds. This is a financial self-rescue measure after severe market share losses—under the previous CEO, buyers defected due to price hikes, product gaps, and quality problems.

The company is scheduled to release detailed annual financial results on February 26, and plans to brief investors on its strategic planning in May.

Since taking over last June, Filosa has undertaken comprehensive reforms of the 14-brand automaker, aiming to regain market share—while paring back its EV ambitions and confronting US tariff costs. In the key US profit market, Filosa has pledged to invest $13 billion, reactivate V8 engines, and postpone EV projects. He’s also cut prices sharply to claw back share.

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