Shares of the automotive company Stellantis dropped 20% during European trading on Friday, after the firm indicated it expects a 22-billion-euro ($26 billion) loss due to restructuring its operations to expedite the introduction of electric and hybrid models.
Immediately after the European market opened, shares of the company listed in Milan were down by 18.7%.
Additional French automotive companies also experienced declines on Friday morning, with Valeo and Forvia both falling over 1.2% and Renault declining by 2%.
Stellantis also shared preliminary figures for the fourth quarter on Friday, projecting a net loss for 2025. In light of this anticipated net loss, it has halted its dividend for 2026 and plans to raise up to 5 billion euros through the issuance of hybrid bonds.
For 2026, the automotive giant is pursuing a mid-single-digit percentage increase in net revenue and a low-single-digit rise in its adjusted operating income margin.
“The charges disclosed today largely represent the repercussions of overestimating the speed of the energy transition which distanced us from the actual needs, means, and desires of many car consumers,” stated Stellantis CEO Antonio Filosa in a statement.
“They also reflect the impact of past poor operational execution, the consequences of which are gradually being rectified by our new Team.”
The company mentioned that its dividend suspension and bond issuance would be instrumental in safeguarding its balance sheet, and outlined the steps taken last year as part of its reset strategy.
These actions included revealing “the largest investment in Stellantis’ history in the U.S.” — amounting to $13 billion over four years — along with launching 10 new models, scrapping products that could not reach profitable scales, and reorganizing its global manufacturing and quality management systems.
As part of the U.S. investment initiative, the transatlantic automaker has announced it will create 5,000 new jobs within its American workforce.
While these actions incurred costs of 22.2 billion euros, the company stated that they have collectively returned to positive volume growth in 2025.
In the latter half of the year, Stellantis’ share of the U.S. market increased to 7.9%, while the company affirmed that it maintained its overall second-place market share position in the enlarged European market.
‘Year of execution’
The company’s stock has faced challenges for a significant period, with its Italian shares plummeting nearly 25% last year and 40.5% the year before. Currently, shares have declined by over 13% since the start of 2026.
Filosa previously declared 2026 as the “year of execution” for the beleaguered automaker, which has been facing declining sales and unsatisfactory earnings for several years.
Stellantis is expected to release its full 2025 earnings on February 26.
