Amazon’s Capex Boosts AI Supply Chain Growth
Stellantis is facing significant turmoil in the market following its announcement of a €22 billion (approximately $26 billion) charge due to a revised focus on electric vehicles (EVs). The automotive giant’s shares plummeted by up to 25% during trading in Milan, with a similar trend mirrored in the premarket for its US listings.
Details of the Charges
The company disclosed these charges after initiating a “reset” of its business strategy, which it claims is essential to align better with consumer demands and operational realities. Stellantis attributed the charges to an overestimation of the energy transition’s pace and historical operational shortcomings.
Breakdown of Financial Impacts
- €14.7 billion for revised product plans, significantly lowering expectations for battery electric vehicles.
- €2.9 billion write-offs related to canceled products.
- €6.0 billion impairment associated with platform reductions.
- €2.1 billion for resizing the EV supply chain.
- €5.4 billion linked to operational changes within the company.
Of the total charge, €5.8 billion will be dispensed as cash payments over the next four years, primarily tied to canceled products and adjustments to ongoing battery electric vehicle models, which are now predicted to fall well below previous volume forecasts.
Strategic Revisions Under New Leadership
Under the leadership of Antonio Filosa, who succeeded former CEO Carlos Tavares in June 2025, Stellantis appears to be moving away from its previous aggressive EV strategy. Despite these challenges, initial efforts to realign the business have led to positive volume growth.
Quarterly Performance and Future Plans
In a recent report, Stellantis revealed that it shipped 1.5 million units in the fourth quarter of 2025, marking a 9% increase from the previous year. The company will hold a conference call at 8 a.m. ET to discuss these preliminary results and will issue its full-year report on February 26, 2026.
Additionally, Stellantis has decided against paying an annual dividend in 2026. The company also announced the sale of its 49% stake in battery manufacturer NextStar Energy to LG Energy Solution, further indicating a shift in focus towards enhancing operational efficiency and financial stability.
