Stellantis Plunges 28% on €22.2 B EV Charge, Suspends Dividend
Stellantis booked a €22.2 billion charge in H2 2025 related to overestimated EV demand, including €6.5 billion in cash payments over four years. The stock plunged 28% on the day, leading the company to suspend its dividend and halt trading after a 14.4% drop.
1. Massive EV Demand Write-Down
Stellantis announced H2 2025 charges of €22.2 billion, excluding from Adjusted Operating Income, to realign its EV strategy after overestimating future demand. These charges include €6.5 billion in cash payments expected over the next four years, reflecting a broader reset toward a diversified powertrain portfolio.
2. Stock Plunge and Dividend Suspension
Following the announcement, Milan-listed shares plunged 28%, with an initial 14.4% drop triggering a trading halt. In response to the financial impact, Stellantis said it will not pay a dividend, signaling a shift to preserve liquidity amid strategy realignment.
3. Sale of Canadian JV Stake
Alongside the write-down, Stellantis agreed to sell its 49% stake in the Canadian battery joint venture to LG Energy Solution for $100. This nominal transaction aims to streamline capital allocation and reduce exposure to high-cost EV development partnerships.