Fri Feb 06 12:10:00 UTC 2026: ### Stellantis Stock Plummets After Announcing Massive Writedown and EV Strategy Shift

The Story:

Shares of Stellantis experienced a dramatic decline on Friday, February 6, 2026, after the automaker announced a 22 billion euro ($26 billion) writedown related to a recalibration of its electrification strategy. The company acknowledged overestimating the pace of the energy transition and hinted at a slowdown in its EV push, leading to a 27% drop in its European shares and a 26.5% fall in premarket trading on Wall Street. The announcement included a pre-release of Q4 figures, anticipating a net loss for 2025, suspension of its 2026 dividend, and plans to raise up to 5 billion euros through hybrid bonds.

Key Points:

  • Stellantis shares plunged 27% in European trading following the announcement of a 22 billion euro writedown.
  • CEO Antonio Filosa attributed the writedown to overestimating the pace of EV adoption and previous operational inefficiencies.
  • The company is slowing down its electrification push, aiming for a pace “governed by demand rather than command.”
  • Stellantis anticipates a net loss for 2025, suspends its 2026 dividend, and plans to issue up to 5 billion euros in hybrid bonds.
  • The company is undergoing a reset strategy, including a $13 billion investment in the U.S. over four years and restructuring its global manufacturing.
  • Stellantis’ U.S. market share rose to 7.9% in the second half of 2025.
  • Stellantis will offload its stake in NextStar Energy, a Canadian battery manufacturing joint venture with LG Energy Solution.

Critical Analysis

The news of Stellantis’ writedown aligns with similar actions taken by Ford and GM, suggesting a broader industry trend of reassessing aggressive EV strategies. The reference to “kitchen sinking” by UBS analysts indicates that Stellantis’ new management team is addressing past issues decisively. The fact that even with “solid regional market fundamentals,” the negative share-price reaction was expected underscores the severity of the initial miscalculation.

Key Takeaways:

  • The automotive industry is experiencing a correction in EV strategy, as initial adoption rates have not met expectations.
  • Stellantis’ financial performance is facing short-term pain due to past missteps.
  • The company is attempting to stabilize its financial position through cost-cutting measures and strategic investments.
  • Market skepticism remains high regarding Stellantis’ long-term viability.
  • Stellantis’ long-term strategy Capital Markets Day in May will be crucial.

Impact Analysis:

The Stellantis writedown and strategic shift away from aggressive EV targets could have long-term implications for the company and the wider automotive industry. The pullback suggests a slower transition to electric vehicles than previously anticipated, potentially impacting government regulations, infrastructure investments, and consumer behavior. The need to preserve its balance sheet suggests the company is prioritizing financial stability over rapid growth, which could affect its competitiveness in the future. Also, Stellantis’ decision to offload its NextStar Energy joint venture indicates the company is restructuring its Canadian investments; it remains to be seen how this impacts North American operations.

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