Stellantis shares plunge on loss warning and EV strategy rethink

Shares in Stellantis tumbled sharply on Friday after the automaker warned it could post losses of up to €22 billion (around $26 billion), citing restructuring costs and a reassessment of the pace of its transition to electric vehicles.

The company’s Italian-listed shares fell about 27%, marking one of its steepest single-day declines in years. The sell-off extended to US markets, where Stellantis shares listed on the New York Stock Exchange dropped roughly 26.5% in pre-market trading.

The negative sentiment spilled over into the broader European automotive sector. Shares of French suppliers Valeo and Forvia each declined more than 1.2%, while Renault fell around 2%, reflecting concerns that a slower-than-expected energy transition could affect industry growth prospects.

In an official statement, CEO Antonio Velosa said the projected losses partly reflect an overestimation of how quickly consumers would shift to electric vehicles. He noted that pricing pressures and varying consumer readiness across markets have required a reassessment of the company’s strategy.

Velosa acknowledged that some costs stem from earlier operational missteps that management is now working to address. While reaffirming Stellantis’ commitment to electric vehicle development, he indicated the company will adopt a more flexible approach, aligning future investments more closely with actual market demand rather than regulatory expectations alone.

What Does This Mean for Me?

The announcement underscores growing uncertainty across the automotive sector as manufacturers balance electrification goals with consumer affordability, infrastructure readiness, and evolving market conditions.