The EV retreat just saw its biggest charge yet — a $26 billion write-down from Jeep-maker Stellantis

Core Viewpoint - Stellantis is taking a €22 billion ($26 billion) charge as part of a major reset of its electric vehicle strategy, marking the largest write-down in a series of recent EV-related charges by global automakers, totaling $55 billion across the industry [1][2]. Group 1: Financial Impact - Volkswagen recorded a $3.5 billion charge in September linked to its electric division [2]. - Ford announced a $19.5 billion charge in December after canceling plans for large EVs [2]. - General Motors reported a $6 billion write-down due to reduced EV production [2]. Group 2: Strategic Shift - Stellantis CEO Antonio Filosa stated that the reset is aimed at aligning with customer preferences, acknowledging past overestimations of the energy transition pace [6]. - The company is shifting focus back to gas-powered vehicles, reintroducing models like the V8 Hemi-powered Ram pickup series and the six-cylinder Dodge Charger [10]. Group 3: Historical Context - Stellantis was formed in 2021 through the merger of Fiat Chrysler Automobiles and PSA Group, investing heavily in EV infrastructure under previous CEO Carlos Tavares [7]. - The anticipated consumer demand for EVs did not materialize, leading to a 70% profit drop during Tavares' final year [8]. Group 4: Product Line Adjustments - Stellantis has canceled or delayed several electric vehicle models, including the Chrysler Airflow and the all-electric Ram 1500 [8]. - The company discontinued its fleet of plug-in hybrid vehicles, ceasing production of models like the Jeep Wrangler 4xe and Chrysler Pacifica Hybrid [9]. - Remaining electric launches by 2026 include the $65,000 Jeep Recon and an extended-range Ram 1500 REV [9]. Group 5: Market Reaction - Following the announcement of the significant EV write-down, Stellantis shares fell by 25.5%, trading at approximately $7.10 per share shortly after market opening [11].