Stellantis Sees Major Stock Drop Following Business Overhaul Announcement
On Friday, shares of Stellantis, the parent company of brands like Jeep and Dodge, plummeted by 25%. This decline followed the disclosure of a hefty $26.5 billion charge intended for restructuring efforts, which notably includes stepping back from electric vehicle (EV) initiatives.
In early trading on the New York Stock Exchange, Stellantis saw its stock decrease by $2.43, dropping to $7.11. Likewise, the stock also reflected a similar decline in the Milan market, where it fell by a quarter.
If this downward trend persists into the afternoon, it could mark Stellantis’ largest single-day drop ever and result in a loss of over 5 billion euros from its market capitalization, according to data from LSEG.
CEO Antonio Filosa mentioned on Friday that despite speculation that the company might be better off selling off some brands, Stellantis plans to unite as a group moving forward. He expressed pride in the company’s strong global presence and reiterated, “It makes a lot of sense to be together. We hope to be together for many years to come.”
The majority of the financial charge—specifically $17.3 billion—was attributed to adjusting product plans to align more closely with customer preferences, particularly in light of setbacks in fully electric vehicles and evolving emissions regulations in the U.S. Stellantis cited additional costs including $2.5 billion for EV supply chain adjustments, $4.8 billion tied to warranties, and $1.5 billion for restructuring European operations.
In comparison, competitors Ford and General Motors also proclaimed substantial charges related to their EV discount plans, but Stellantis’ figures were lower than those of its rivals, though still surprisingly high.
Filosa characterized the restructuring as a crucial shift aimed at putting customer preferences at the center of their strategy, both globally and locally.
In its statement, the company affirmed that while it will remain engaged in EV development, the rollout will progress at a pace driven by actual demand rather than orders. Filosa acknowledged the company’s mission of growth, especially following years of falling market share, but he also hinted at potential reductions within the company’s brand portfolio, which includes names like Chrysler and Fiat.
On the stock market, the company faced additional pressures due to an unpromising outlook. Stellantis is anticipated to report a net loss in 2025, with detailed annual results set to be released on February 26. Looking ahead to 2026, they forecast modest growth in net revenue and adjusted operating margins.
Filosa also referenced the global sales decline experienced under former CEO Carlos Tavares and the ramifications of “previously poor business execution” on Stellantis. Remember, Stellantis emerged in 2021 through the $52 billion merger of Fiat Chrysler and the PSA Group.
