Stellantis Hit With €22bn EV Writedown as Shares Collapse and Trading Stops

Stellantis shares were abruptly halted in European trading on Friday after the automaker stunned investors with a €22.2 billion writedown tied to its electric-vehicle strategy, triggering a near-20% stock collapse within minutes of the opening bell. The Milan-listed stock plunged as volatility surged, forcing an automatic trading pause as losses accelerated. The selloff followed Stellantis’ disclosure that it expects a preliminary net loss of between €19 billion and €21 billion for the second half of 2025, a dramatic reversal driven by scaled-back EV investments, asset impairments, and a sweeping operational reset. By the time trading was halted, shares were changing hands around €6.6, sharply lower on the day and hovering near the bottom of their 52-week range. Billions of euros in market value were wiped out almost instantly, underscoring how unprepared markets were for the scale of the announcement. The writedown reflects a fundamental reassessment of how quickly consumers are moving toward electric vehicles. Stellantis acknowledged that earlier assumptions about EV adoption, pricing power, and infrastructure readiness proved overly optimistic, forcing the company to revalue assets tied to battery production, platforms, and future model programs. Chief executive Antonio Filosa said the charges largely stem from “over-estimating the pace of the energy transition,” adding that the strategy had drifted away from what many buyers currently want or can afford. The charges also incorporate the lingering impact of past operational missteps, which management says are now being addressed under a reorganised leadership structure. The shock announcement was compounded by Stellantis’ decision to suspend its dividend for the year, a move that removes a key support for income-focused investors. The company said cash preservation is now a priority as it navigates restructuring costs and softer demand across major markets. To reinforce its balance sheet, Stellantis plans to raise up to €5 billion through the issuance of hybrid bonds. Management said the move is designed to provide flexibility while the company works through its transition and attempts to stabilise earnings. The fallout spilled into the broader European auto sector, with supplier and rival shares sliding as investors reassessed the financial risks tied to electrification strategies. Concerns are mounting that other legacy automakers may be forced to follow suit if EV demand continues to lag earlier projections. Despite the turmoil, Stellantis reiterated its outlook for 2026, forecasting a mid-single-digit increase in net revenue and a low-single-digit improvement in adjusted operating margins. Investors, however, remain cautious, with attention now shifting to whether the group can rebuild confidence after one of the most abrupt resets seen in the European auto industry in years. Further details on the writedown and trading halt were reported by Reuters, highlighting the growing strain the EV transition is placing on global carmakers.