What happened to Stellantis shares? Stellantis stock crashes 25% in a single day as Jeep, Ram, and Dodge owner’s €22 billion EV reset shocks investors

Stellantis (STLA) stock tumbles 25% today: Stellantis (STLA) sent shockwaves through the global automotive sector on Friday, February 6, 2026, as shares plummeted over 25% following the disclosure of a staggering $26.5 billion (€22.2 billion) restructuring charge. This massive financial hit, linked to a radical retreat from its previous electric vehicle (EV) strategy, triggered an immediate trading halt in Milan after a 14.4% opening drop.

The automaker, which owns iconic brands like Jeep, Ram, and Dodge, confirmed a preliminary net loss of up to $21 billion (€19 billion) for the second half of 2025. This "Great EV Reset" effectively erases years of aggressive electrification planning under former leadership, as the company pivots back to internal combustion engines (ICE) and hybrids to meet cooling consumer demand and high manufacturing costs.

To preserve liquidity, Stellantis took the drastic step of suspending its 2026 dividend, a move that shocked income-focused investors. The board also authorized the issuance of $5.9 billion (€5 billion) in hybrid bonds to bolster its balance sheet.


CEO Antonio Filosa, who assumed leadership in mid-2025, described the charges as a necessary "alignment with reality," admitting the company significantly overestimated the pace of the global energy transition. This financial bloodbath is not an isolated incident; it follows a historic trend in Detroit, joining multi-billion dollar writedowns at Ford and General Motors as the industry shifts toward a "demand-led" production model.

A brutal reset for Stellantis stock and its EV ambitions

The write-down is enormous by any standard. Stellantis said about €14.7 billion ($17.3 billion) of the charge will hit the second half of its 2025 results, while roughly €6.5 billion ($7.7 billion) will translate into cash outflows over the next four years. Most of the charges are non-cash and relate to money already spent. Still, investors focused on what comes next. And they did not like what they saw.

Roughly $20 billion of the hit is linked directly to electric vehicles. The rest includes about $4.1 billion in warranty provisions, supply-chain adjustments, canceled products, platform impairments, and workforce reductions in Europe. Stellantis admitted it overestimated how quickly buyers would shift to battery electric vehicles. That misread left the company with excess capacity and EV platforms that never reached profitable scale.

Beyond product cancellations, the company is paying roughly $7.7 billion (€6.5 billion) in cash settlements to suppliers for broken contracts and volume guarantees. Stellantis also confirmed it is exiting its 49% stake in the NextStar Energy battery joint venture in Canada, selling it back to partner LG Energy Solution. This retreat highlights a broader industry trend where automakers are "resizing" their supply chains to match a market that has shifted heavily toward hybrids and traditional powertrains.

Chief executive Antonio Filosa called the move “a strategic, profound reset.” In plain terms, Stellantis built too far ahead of real demand. Customers did not follow as fast as planners expected. Prices stayed high. Incentives rose. Margins collapsed.

Why the €22 billion charge shocked investors

The size of the charge alone rattled markets. But the real blow came from the dividend decision. Stellantis confirmed it will not pay a dividend in 2026, citing a net loss in 2025. That broke a long-standing pattern. The company had reliably paid an annual dividend, usually announced early in the year and distributed in the second quarter. The 2025 dividend stood at about $0.77 per share. For income-focused investors, the cut removed a major reason to hold the stock.

At the same time, the board authorized a €5 billion non-convertible bond offering. The goal is simple. Shore up liquidity. Protect the balance sheet. Buy time for the turnaround. But in markets, bond issuance alongside dividend suspension often signals stress. That perception weighed heavily on shares.

The sell-off was sharp. Stellantis traded near $30 in early 2024. By Friday morning, it was below $10 before the latest plunge. The stock has now lost more than two-thirds of its value in roughly two years.

How Stellantis’ EV write-off compares with Ford and GM

Stellantis is not alone. U.S. rivals have taken similar hits. Ford Motor recorded about $19.5 billion in EV-related charges in December. General Motors followed with a cumulative $6.6 billion hit tied to its electric business. Across the industry, the story looks familiar.

Automakers ramped EV investment aggressively. They assumed rapid adoption. Instead, demand cooled. High interest rates pushed monthly payments to record levels. Charging infrastructure lagged. Buyers hesitated. As a result, factories ran below capacity and costs stayed stubbornly high.

In a move that serves as the centerpiece of its "Freedom of Choice" strategy, Stellantis is officially reviving the 5.7-liter HEMI V-8 engine for the 2026 Ram 1500 and other core models. This pivot is a direct response to consumer pushback against the all-electric Ram 1500 BEV and the six-cylinder Hurricane engines. Stellantis aims to produce over 100,000 HEMI units in 2026, tripling its 2025 output.

By reintroducing high-margin internal combustion models, Stellantis hopes to reclaim U.S. market share, which recovered slightly to 7.9% in late 2025. The company will detail the full extent of this "hybrid-heavy" future during its Investor Day on May 21, 2026.

Stellantis said part of its reassessment also reflects new U.S. emissions rules introduced under President Donald Trump, which reduced expectations for battery electric vehicle volumes. The company is now aligning production more closely with what customers are actually buying. That includes hybrids and internal combustion models, especially in North America.

What Stellantis expects in 2026 after the reset

Despite the shock, Stellantis tried to strike a forward-looking tone. Management said it expects improvement in net revenue, operating margin, and cash generation in 2026, with performance strengthening from the first half to the second half of the year. Wall Street’s baseline view is similar. Analysts tracked by FactSet project operating profit of roughly $7 billion in 2026, up from about $3 billion in 2025.

The company said the charges will not affect adjusted operating income, a key metric it emphasizes. Still, confidence must be rebuilt. Filosa, who took over as CEO in May 2025 after Carlos Tavares resigned amid profit declines, is now under pressure to deliver results quickly.

Full-year financial results are due on Feb. 26. Until then, investors are likely to stay cautious. The message from markets is clear. A reset may be necessary. But it comes at a steep cost. For Stellantis, the road to recovery will depend on disciplined spending, realistic EV targets, and winning back buyers who walked away when prices rose faster than expectations.