A sudden financial shock hit European automotive giant Stellantis, sending its shares plummeting by nearly 30% during late trading. The sharp decline came after the company announced a massive 22 billion euro (approximately 180 billion RMB) write-down linked to a strategic overhaul of its electric vehicle operations, far exceeding analyst expectations.

During U.S. trading on February 6, Stellantis shares fell sharply at the open, dropping over 26% intraday before closing down 23.69%. In European trading, the stock tumbled nearly 30% at one point, finishing the session with a 25.24% loss. The announcement triggered a broader sell-off in French automotive stocks, with Renault declining over 3%, while Valeo and Forvia both fell more than 1%.

Stellantis CEO Antonio Filosa stated that the substantial charges largely reflect the company's overestimation of the energy transition pace, which diverged from actual consumer needs and capabilities. He acknowledged previous operational execution issues that the new management team is addressing.

The write-down includes 14.7 billion euros for product plan adjustments to align with customer preferences and new U.S. emission regulations. Another 2.1 billion euros stems from EV supply chain restructuring, including rationalizing battery manufacturing capacity. Quality issues contributed 4.1 billion euros in additional warranty provisions, while 1.3 billion euros relates to European restructuring costs including workforce reductions.

The company also revealed preliminary figures showing an expected 19-21 billion euro loss for the second half of 2025. In response, Stellantis will suspend its 2026 dividend and plans to raise up to 5 billion euros through hybrid bond issuance to maintain its balance sheet. For 2026 guidance, the company targets mid-single-digit percentage revenue growth and low-single-digit adjusted operating margin improvement.

Analysts noted the unexpected timing of these announcements outside regular earnings reporting. Brokerage Equita reported the write-down vastly exceeded their initial 2 billion euro expectation.

Further signaling its strategic shift, Stellantis announced it will exit the NextStar Energy joint venture with LG Energy Solution in Canada, with LG acquiring Stellantis' 49% stake. The company will also discontinue several EV models including the RAM 1500 electric pickup production in the U.S. and delay Alfa Romeo's European EV projects.

This retreat mirrors similar moves by other automakers, including Ford's December announcement reducing EV plans by $19.5 billion and discontinuing the F150 Lightning electric pickup. Ford also restructured its BlueOval SK battery joint venture with SK On, with each partner taking independent ownership of different factory locations.

Stellantis is scheduled to formally release its full 2025 financial results on February 26.