Shares Of Stellantis Fell 20% As The Company Anticipates A Loss Of € 22 Billion

Stellantis announced on Friday that it expects a loss of around 22 billion euros as a result of a reorganization of its business to accelerate the introduction of electric and hybrid vehicles.

This was stated by the CEO of Stellantis, Antonio Filosa, according to the American CNBC.

Shares in Stellantis plunged 20 percent in European trading on Friday shortly after the market opened in response to the massive spending spree the company announced.

The company released certain data for the fourth quarter in advance, saying it expects a net loss for 2025. That is why it has suspended the payment of dividends for 2026 and plans to raise five billion euros by issuing hybrid bonds.

For 2026, the auto giant is targeting mid-single-digit percentage growth in net income and low-single-digit adjusted operating income margin growth.

“The costs announced today largely reflect the cost of overestimating the pace of the energy transition, which has distanced us from the real needs, opportunities, and desires of many car buyers,” Filosa said in a statement.

“They also reflect the impact of previous poor operational execution, the consequences of which are being progressively addressed by our new team,” the CEO added.

The company said the break in dividend payments and bond issuance will help preserve its balance sheet and recalled the moves it made last year as part of its reset strategy.

This included the announcement of “the largest investment in Stellantis history in the US” totalling $13 billion over four years, as well as the launch of 10 new products, the cancellation of those that could not turn a profit in mass production, and the restructuring of global manufacturing and quality management capabilities.

While these moves resulted in costs of €22.2 billion, the company said they collectively led to a return to positive sales volume growth in 2025.

In the second half of the year, Stellantis’ market share in the US rose to 7.9 percent, while the company said it maintained its overall second position in terms of market share in the expanded Europe.

Stellantis is scheduled to release full 2025 earnings results on February 26.

Stellantis Europe is the owner of 67 percent of the Fiat Chrysler Automobiles (FCA) factory in Kragujevac, where the Grande Panda electric, hybrid, and gasoline models are produced.

• Read More: New Stellantis Boss Set To Determine Which Brand Stays Or Goes