Stellantis Faces Major Write-Offs Amid EV Demand Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy STLA?
Source: Fool
- Massive Write-Offs: Stellantis announced write-offs totaling €22.2 billion (approximately $26.5 billion) primarily due to lower-than-expected demand for electric vehicles, resulting in a 24.5% drop in stock price on Friday, indicating significant challenges in the company's EV strategy.
- Product Plan Adjustments: Of this amount, €14.7 billion relates to changes in product plans, including write-offs for underperforming models, costs for canceled future products, and payments to suppliers, which not only impact short-term financials but may also weaken long-term competitive positioning.
- Supply Chain Reductions: Stellantis is cutting €2.1 billion in planned investments for its EV supply chain, mainly in battery manufacturing, reflecting a cautious outlook on the future of the EV market and potentially diminishing its market share in this segment.
- Future Financial Outlook: The company now expects an adjusted operating loss of €1.2 billion to €1.5 billion for the second half of 2025 and has suspended dividend payments, indicating serious financial health challenges that investors should monitor closely in upcoming financial reports.
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Analyst Views on STLA
Wall Street analysts forecast STLA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for STLA is 11.81 USD with a low forecast of 9.33 USD and a high forecast of 15.15 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
7 Buy
7 Hold
0 Sell
Moderate Buy
Current: 9.540
Low
9.33
Averages
11.81
High
15.15
Current: 9.540
Low
9.33
Averages
11.81
High
15.15
About STLA
Stellantis N.V., formerly Fiat Chrysler Automobiles N.V., is a holding Company based in the Netherlands and operates as an automaker and a mobility provider. The Company is engaged in designing, engineering, manufacturing, distributing and selling vehicles, components and production systems. The Company has industrial operations in more than 30 countries and sells its vehicles directly or through distributors and dealers in more than 130 countries. The Company designs, manufactures, distributes and sells vehicles for the mass-market under the Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Lancia and Ram brands. In addition, the Company designs, manufactures, distributes and sells luxury vehicles under the Maserati brand. The Company's brand portfolio also includes Peugeot, Citroen, DS Automobiles, Opel and Vauxhall. It offers a wide variety of vehicle choices from luxury and mainstream passenger vehicles to pickup trucks, sport utility vehicle (SUVs).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Stellantis Anticipates €22 Billion Charge Due to Energy Transition Overestimation
- Financial Loss Projection: Stellantis anticipates a significant charge of approximately €22 billion (around $26 billion), primarily due to overestimating the pace of the energy transition, which indicates a disconnect from actual consumer needs and could lead to a decline in market share.
- Management Statement: CEO Antonio Filosa stated that these charges reflect not only a misjudgment of market demand but also highlight previous operational execution shortcomings, emphasizing that the new team is progressively addressing these issues to restore the company's competitiveness.
- Electrification Transition Challenges: Stellantis's business overhaul aims to accelerate the rollout of electric and hybrid vehicles; however, the inflated expectations may lead to misallocation of resources, potentially impacting the company's long-term strategic goals and market positioning.
- Potential Market Reaction Impact: The announcement of such a substantial loss may negatively affect investor confidence, particularly against the backdrop of increasing competition in the electric vehicle market, necessitating Stellantis to implement effective measures to regain market trust.
See More
Stellantis Executive Receives What Drives Her Trailblazer Award
- Trailblazer Award Presentation: Chris Feuell of Stellantis was awarded the What Drives Her Trailblazer Award during the media preview of the 2026 Chicago Auto Show, recognizing her contributions to driving change within the automotive industry and her commitment to supporting women.
- Consecutive Recognition: Feuell is the second consecutive Stellantis representative to receive this award, following Audrey Moore, VP and Chief Engineer for North American sedan programs, who was honored in 2025, highlighting the company's ongoing commitment to female leadership.
- Industry Influence: Appointed CEO of the Chrysler brand in September 2021 and head of Alfa Romeo North America in December 2024, Feuell leverages her extensive experience in automotive and supply chain automation to drive strategic growth for Stellantis.
- Significance of the Award: The award honors women in the automotive industry who break barriers, pursue non-traditional roles, and empower others, with Feuell's recognition not only enhancing her professional profile but also serving as an inspiration for other women in the industry.
See More
Stellantis Executive Receives What Drives Her Trailblazer Award
- Award Presentation: During the media preview of the 2026 Chicago Auto Show, Stellantis' Chris Feuell was honored with the What Drives Her Trailblazer Award, recognizing her significant contributions to the automotive industry and highlighting the crucial role of women in traditionally male-dominated fields.
- Industry Influence: Feuell has served as CEO of the Chrysler brand since September 2021 and became head of Alfa Romeo North America in December 2024, leveraging her extensive global experience to drive innovation and growth within the company.
- Advocacy for Women: In her acceptance speech, Feuell emphasized the importance of women in the automotive sector and expressed gratitude to the organizers and judges for recognizing female innovators, showcasing her commitment to driving change in the industry.
- Historic Auto Show: The Chicago Auto Show, first held in 1901, is the longest-running auto exposition in North America, with the 2026 event scheduled from February 7 to 16 at McCormick Place, attracting numerous participants from the automotive industry.
See More
Stellantis Faces Major Write-Offs Amid EV Demand Decline
- Massive Write-Offs: Stellantis announced write-offs totaling €22.2 billion (approximately $26.5 billion) primarily due to lower-than-expected demand for electric vehicles, resulting in a 24.5% drop in stock price on Friday, indicating significant challenges in the company's EV strategy.
- Product Plan Adjustments: Of this amount, €14.7 billion relates to changes in product plans, including write-offs for underperforming models, costs for canceled future products, and payments to suppliers, which not only impact short-term financials but may also weaken long-term competitive positioning.
- Supply Chain Reductions: Stellantis is cutting €2.1 billion in planned investments for its EV supply chain, mainly in battery manufacturing, reflecting a cautious outlook on the future of the EV market and potentially diminishing its market share in this segment.
- Future Financial Outlook: The company now expects an adjusted operating loss of €1.2 billion to €1.5 billion for the second half of 2025 and has suspended dividend payments, indicating serious financial health challenges that investors should monitor closely in upcoming financial reports.
See More
US Stocks Rebound as Tech Shares Recover
- Dow Jones Surge: The Dow Jones Industrial Average surged by approximately 2.2%, gaining over 1,000 points and nearing the 50,000 mark, indicating a recovery in market confidence towards tech stocks, which may attract more investor interest.
- Big Tech Spending: The four major tech giants are projected to spend over $650 billion on artificial intelligence investments in 2026, marking a 67% increase from $381 billion in 2025, which will drive growth in related sectors and enhance market competitiveness.
- Bitcoin Price Recovery: Bitcoin's price steadily rebounded above $68,000, despite a weak performance this week, reflecting cautious optimism in the cryptocurrency market that could influence investor risk appetite.
- Stellantis Major Write-Down: Stellantis announced a write-down of over €22 billion ($26 billion) due to scaling back its EV plans, causing its stock to plummet over 20% on Wall Street and in Milan, highlighting market concerns about its future strategy.
See More
Stellantis Executive Receives What Drives Her Trailblazer Award
- Trailblazer Award Presentation: During the media preview of the 2026 Chicago Auto Show, Stellantis' Chris Feuell was awarded the What Drives Her Trailblazer Award, recognizing her outstanding contributions and leadership in the automotive industry, in partnership with A Girls Guide to Cars.
- Consecutive Award Recognition: Feuell is the second consecutive Stellantis representative to receive this award, following Audrey Moore, Vice President of North American sedan programs, who was honored in 2025, highlighting the company's ongoing commitment to promoting female leadership.
- Industry Influence: Appointed CEO of the Chrysler brand in September 2021 and head of Alfa Romeo North America in December 2024, Feuell's extensive experience and leadership in the automotive sector have paved the way for more opportunities for women in the industry.
- Long-standing Auto Show: The Chicago Auto Show, first held in 1901, is the longest-running auto exposition in North America, with the 2026 public exhibition scheduled from February 7 to 16 at McCormick Place, drawing significant attention and participation from the automotive industry.
See More
Stellantis Anticipates €22 Billion Charge Due to Energy Transition Overestimation
- Financial Loss Projection: Stellantis anticipates a significant charge of approximately €22 billion (around $26 billion), primarily due to overestimating the pace of the energy transition, which indicates a disconnect from actual consumer needs and could lead to a decline in market share.
- Management Statement: CEO Antonio Filosa stated that these charges reflect not only a misjudgment of market demand but also highlight previous operational execution shortcomings, emphasizing that the new team is progressively addressing these issues to restore the company's competitiveness.
- Electrification Transition Challenges: Stellantis's business overhaul aims to accelerate the rollout of electric and hybrid vehicles; however, the inflated expectations may lead to misallocation of resources, potentially impacting the company's long-term strategic goals and market positioning.
- Potential Market Reaction Impact: The announcement of such a substantial loss may negatively affect investor confidence, particularly against the backdrop of increasing competition in the electric vehicle market, necessitating Stellantis to implement effective measures to regain market trust.
See More
Stellantis Executive Receives What Drives Her Trailblazer Award
- Trailblazer Award Presentation: Chris Feuell of Stellantis was awarded the What Drives Her Trailblazer Award during the media preview of the 2026 Chicago Auto Show, recognizing her contributions to driving change within the automotive industry and her commitment to supporting women.
- Consecutive Recognition: Feuell is the second consecutive Stellantis representative to receive this award, following Audrey Moore, VP and Chief Engineer for North American sedan programs, who was honored in 2025, highlighting the company's ongoing commitment to female leadership.
- Industry Influence: Appointed CEO of the Chrysler brand in September 2021 and head of Alfa Romeo North America in December 2024, Feuell leverages her extensive experience in automotive and supply chain automation to drive strategic growth for Stellantis.
- Significance of the Award: The award honors women in the automotive industry who break barriers, pursue non-traditional roles, and empower others, with Feuell's recognition not only enhancing her professional profile but also serving as an inspiration for other women in the industry.
See More
Stellantis Executive Receives What Drives Her Trailblazer Award
- Award Presentation: During the media preview of the 2026 Chicago Auto Show, Stellantis' Chris Feuell was honored with the What Drives Her Trailblazer Award, recognizing her significant contributions to the automotive industry and highlighting the crucial role of women in traditionally male-dominated fields.
- Industry Influence: Feuell has served as CEO of the Chrysler brand since September 2021 and became head of Alfa Romeo North America in December 2024, leveraging her extensive global experience to drive innovation and growth within the company.
- Advocacy for Women: In her acceptance speech, Feuell emphasized the importance of women in the automotive sector and expressed gratitude to the organizers and judges for recognizing female innovators, showcasing her commitment to driving change in the industry.
- Historic Auto Show: The Chicago Auto Show, first held in 1901, is the longest-running auto exposition in North America, with the 2026 event scheduled from February 7 to 16 at McCormick Place, attracting numerous participants from the automotive industry.
See More
Stellantis Faces Major Write-Offs Amid EV Demand Decline
- Massive Write-Offs: Stellantis announced write-offs totaling €22.2 billion (approximately $26.5 billion) primarily due to lower-than-expected demand for electric vehicles, resulting in a 24.5% drop in stock price on Friday, indicating significant challenges in the company's EV strategy.
- Product Plan Adjustments: Of this amount, €14.7 billion relates to changes in product plans, including write-offs for underperforming models, costs for canceled future products, and payments to suppliers, which not only impact short-term financials but may also weaken long-term competitive positioning.
- Supply Chain Reductions: Stellantis is cutting €2.1 billion in planned investments for its EV supply chain, mainly in battery manufacturing, reflecting a cautious outlook on the future of the EV market and potentially diminishing its market share in this segment.
- Future Financial Outlook: The company now expects an adjusted operating loss of €1.2 billion to €1.5 billion for the second half of 2025 and has suspended dividend payments, indicating serious financial health challenges that investors should monitor closely in upcoming financial reports.
See More
US Stocks Rebound as Tech Shares Recover
- Dow Jones Surge: The Dow Jones Industrial Average surged by approximately 2.2%, gaining over 1,000 points and nearing the 50,000 mark, indicating a recovery in market confidence towards tech stocks, which may attract more investor interest.
- Big Tech Spending: The four major tech giants are projected to spend over $650 billion on artificial intelligence investments in 2026, marking a 67% increase from $381 billion in 2025, which will drive growth in related sectors and enhance market competitiveness.
- Bitcoin Price Recovery: Bitcoin's price steadily rebounded above $68,000, despite a weak performance this week, reflecting cautious optimism in the cryptocurrency market that could influence investor risk appetite.
- Stellantis Major Write-Down: Stellantis announced a write-down of over €22 billion ($26 billion) due to scaling back its EV plans, causing its stock to plummet over 20% on Wall Street and in Milan, highlighting market concerns about its future strategy.
See More
Stellantis Executive Receives What Drives Her Trailblazer Award
- Trailblazer Award Presentation: During the media preview of the 2026 Chicago Auto Show, Stellantis' Chris Feuell was awarded the What Drives Her Trailblazer Award, recognizing her outstanding contributions and leadership in the automotive industry, in partnership with A Girls Guide to Cars.
- Consecutive Award Recognition: Feuell is the second consecutive Stellantis representative to receive this award, following Audrey Moore, Vice President of North American sedan programs, who was honored in 2025, highlighting the company's ongoing commitment to promoting female leadership.
- Industry Influence: Appointed CEO of the Chrysler brand in September 2021 and head of Alfa Romeo North America in December 2024, Feuell's extensive experience and leadership in the automotive sector have paved the way for more opportunities for women in the industry.
- Long-standing Auto Show: The Chicago Auto Show, first held in 1901, is the longest-running auto exposition in North America, with the 2026 public exhibition scheduled from February 7 to 16 at McCormick Place, drawing significant attention and participation from the automotive industry.
See More
