Stellantis stock collapses as Jeep-maker takes $26 billion hit in latest EV pivot

Core Viewpoint - Stellantis reported a significant charge of 22 billion euros ($25.94 billion) as it restructures its electric vehicle (EV) business, with cash payments of 6.5 billion euros ($7.7 billion) to be disbursed over the next four years [1][5] Group 1: Financial Impact - The charges include 14.7 billion euros ($17.34 billion) that will affect the company's results in the second half of 2025, but will not impact Stellantis's adjusted operating income (AOI) [1][2] - Stellantis will not issue a dividend due to the losses and has authorized a 5 billion euro ($5.9 billion) non-convertible bond offering to strengthen its financing [5] Group 2: Strategic Reasons - The charges are attributed to overestimating the pace of the energy transition and previous operational failures, which the new management team is addressing [2][3] - A significant portion of the charges is related to realigning production plans with customer preferences and the impact of new emissions regulations in the US, leading to write-offs for cancelled products and impairments to some EV platforms [4] Group 3: Future Outlook - Looking ahead to 2026, Stellantis anticipates improvements in net revenues, adjusted operating margin, and cash generation compared to the previous year [6]