Stellantis Shares Plummet 20% Following $26.5 Billion EV Writedown
Stellantis experienced a significant drop in its share prices following a major financial writedown related to its electric vehicle (EV) strategy. The Franco-Italian automotive group reported a staggering €22.2 billion ($26.5 billion) in charges for the second half of 2025, prompting a sharp decline in stock value.
Stellantis Shares Plummet 20% Following $26.5 Billion EV Writedown
On February 6, 2024, Stellantis shares fell as much as 24%, hitting a low of €6.17 in Milan, which marked their lowest point since May 2020. The company’s market capitalization shrank by over €5 billion as a result of this steep decline.
Market Reaction
- Milan-listed shares experienced a temporary halt in trading after an initial 14% dip.
- Shares listed in Paris saw a decrease of 23.9%.
- The losses could represent the largest single-day decline for Stellantis.
Financial Overview
Broker Equita noted that the writedown was significantly larger than their previous estimate of €2 billion. Stellantis also indicated a preliminary loss between €19 billion to €21 billion for the second half of 2025. Moreover, the company announced it would forgo paying dividends this year, further alarming investors.
Impact on Stakeholders
Shares of Exor, Stellantis’ largest investor and the holding company for Italy’s Agnelli family, dropped nearly 5%, positioning them at the bottom of the Amsterdam blue-chip index. A call with Stellantis’ CEO and finance chief is scheduled to discuss these preliminary financial results.
Upcoming Reports
The full-year financial report from Stellantis is set to be released on February 26, 2024. The announcement is highly anticipated as stakeholders seek clarity on the company’s direction and financial health in light of these substantial losses.
As Stellantis navigates its EV ambitions and market challenges, investors and analysts will closely monitor future developments and financial releases.
