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Stellantis on Friday announced a $26.5 billion valuation as the automaker cuts electric vehicle (EV) production, joining other manufacturers in taking financial success after misjudging consumer demand for EVs.
Stellantis – parent company of brands including Chrysler, Jeep, Dodge and Ram – became the latest automaker to adopt the power. The $26.5 billion charge is larger than what Ford and General Motors took in after the government’s EV subsidies ended.
The automaker had set ambitious EV goals under its former CEO, Carlos Tavares, who aimed for EVs to make up 100% of sales in Europe and 50% of US sales by 2030. Tavares was forced out in 2024 after declining sales in the US, where Stellantis was exposed due to reliance on Ramgin Pickup and Ramgin Jeep sales.
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The 2026 model year Fiat 500e is an all-electric car. (Stellantis)
Across the auto industry, fully electric vehicles represented 19.5% of European car sales last year and just 7.7% of new US car sales.
CEO Antonio Filosawho took over at Stellantis last summer, said on a call with reporters that the company’s previous views on demand for EVs were “very optimistic” and pointed out, “What we’re announcing today is a fundamental reset of our business model …
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| A ticker | Security | Finally | Change | Change % |
|---|---|---|---|---|
| STLA | STELLANTIS NV share price | 7.29 | -2.24 |
-23.49% |
The cases of Stellantisbooked in the company’s results for the second half of 2025, they also revealed quality issues that Filosa blamed on cost-cutting under Tavares, which he said had caused the automaker to hire 2,000 engineers worldwide.
These costs included reductions in the company’s EV supply chain, revised warranty coverage assumptions due to lower product quality, and previously announced costs. termination of employment in Europe.
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Stellantis is an international car manufacturer with brands ranging from Fiat and Maserati to Chrysler, Jeep and Dodge. (Geoff Robins/AFP via Getty Images)
Ross Mould, director of investment at AJ Bell, said the write-up showed that Stellantis “got it wrong about how quickly the world will change from combustion engines to electric power.”
Mold added that the success enjoyed by Chinese EV makers such as BYD “begs the question of whether Stellantis’ frustration with its EV sales is related to market problems or whether drivers simply don’t like their cars.”
Shares of Stellantis sunk on the news, the company’s New York-traded stock fell more than 22% during Friday’s trading session.
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The multinational carmaker – which includes American, French and Italian car brands – saw its Milan-traded shares fall more than 23%.
Stellantis is forecasting mid-single-digit growth in revenue for the year 2026, and low-single-digit adjusted operating income. It generates industrial free cash flow by 2027. This company also will not pay a dividend this year.
Reuters contributed to this report.
