Stellantis is confronting a growing crisis after taking a massive financial hit tied to its electric vehicle strategy, recording a roughly $26 billion-plus writedown as sales of EVs slow and demand shifts, with the automaker scaling back EV projects, realigning product plans toward customer preferences and internal combustion engines, and even exploring exiting battery partnerships as legacy brands grapple with over-optimistic forecasts and regulatory changes that have cooled the EV boom and exposed strategic missteps.
Sources
https://www.theverge.com/transportation/881987/stellantis-crisis-ev-loss-sales-regulations
https://www.stellantis.com/en/news/press-releases/2026/february/stellantis-resets-its-business-to-meet-customer-preferences-and-to-support-profitable-growth
https://www.reuters.com/business/automaker-stellantis-books-222-bln-euro-writedowns-h2-2025-ev-pullback-2026-02-06
https://www.globalbankingandfinance.com/stellantis-seeks-exit-battery-venture-samsung-ev-losses/
https://www.wardsauto.com/news/stellantis-takes-26b-write-down-over-evs-sells-stake-in-battery-jv-for-1/811777/
Key Takeaways
• Stellantis has booked more than $26 billion in charges tied to electric vehicle investment writedowns and strategy resets after anticipated EV demand failed to materialize.
• The company is recalibrating its product portfolio toward customer preferences, which includes emphasis on hybrids and internal combustion engines, and reviewing commitments to battery ventures.
• Shares have tumbled and strategic uncertainty has increased as Stellantis and other legacy automakers rethink EV strategies amid changing regulatory and market conditions.
In-Depth
Stellantis, the global auto giant behind brands like Jeep, Dodge, Chrysler, and more, has run into significant financial headwinds this year that underscore deeper issues in its electric vehicle strategy and market positioning. In early 2026 the company disclosed €22.2 billion (about $26.5 billion) in charges related to adjusting its EV product plans and struggling to match evolving customer demand, particularly in the United States where electric vehicle sales have lagged broader expectations. This massive writedown reflects not just lower sales projections but also the cancellation of planned EV models and the reduction of EV platforms that no longer fit consumer preferences.
The write-downs have had a direct impact on Stellantis’ financial results, wiping out a substantial portion of its prior investments and leading to a hit on profits and a notable drop in stock value. Stellantis isn’t alone in facing pressure in the EV space — other legacy automakers have also recorded significant losses on their EV investments as demand cools and incentives shift — but the scale of Stellantis’ charges has raised questions about the company’s strategic direction and ability to adapt to market realities.
Part of the company’s response has been to reset its business strategy, focusing more on a broader mix of vehicle types that better align with what customers are buying today. That means putting greater emphasis on hybrids and internal combustion engines that still dominate demand, expanding customer choice rather than committing solely to EVs, and resizing battery production plans. This realignment has led Stellantis to rethink battery joint ventures, including plans to exit its U.S. battery partnership with Samsung SDI. Exiting such ventures could be costly and complex but reflects the company’s broader move away from aggressive EV investment toward a more diversified approach.
The challenge for Stellantis also highlights wider questions about how quickly the auto industry should pivot to electrification. While government regulatory pushes and incentives once encouraged rapid shifts toward EVs, recent changes in policy and consumer behavior have cooled enthusiasm, pushing legacy automakers to balance innovation with profitability and market realities. Stellantis’ strategy reset and financial adjustments reveal the tension between long-term electrification goals and near-term business fundamentals. As Stellantis navigates this transition, its ability to stay competitive will hinge on balancing investment in future technologies with understanding current demand patterns and customer preferences. The company’s heavy reliance on traditional vehicle segments and the ongoing recalibration of its EV commitments will likely define its performance in the years ahead.