Stellantis's electric vehicle revolution cost more than €22 billion, and to regain growth, it is focusing on a new strategy more aligned with the desires of car buyers.
And the stock plummeted on the stock market: on Friday, it dropped 25.17% to €6.11, setting the clock back to May 2020, and wasting €5.9 billion in market capitalization. In this context, shareholders will receive no dividends this year.
CEO Antonio Filosa assures that the group will "return to profitability" by 2026 and that there will be no need for capital increases, while the board of directors has approved the issuance of perpetual subordinated, non-convertible hybrid bonds, up to a maximum of €5 billion.
The charges will result in cash outflows of €6.5 billion over the next four years due to the cancelled products, but also to other ongoing electric car programs, the expected volumes of which are lower than previously projected.
There are also write-downs for cancelled products – including the electric Ram 1500 – and €6 billion are related to platforms, another €2.1 billion is linked to the downsizing of the supply chain dedicated to electric vehicles.
The effects of Stellantis's change of direction are evident in the second half of 2025 financial statements: a significant loss of between €19 and €21 billion, revenues between €78 and €80 billion, a negative adjusted operating result of between -€1.2 and -€1.5 billion, and a negative cash flow of between €2.3 and €2.5 billion. A positive sign, however, comes from vehicle deliveries: in the last quarter of 2025, 1.5 million were delivered worldwide, up 9% year-over-year.
To fully understand Stellantis' new strategy, we'll have to wait for the Investor Day on May 21 at the company's American headquarters in Auburn Hills.
(Unioneonline)
