Stellantis in the Red After U-Turn on US Electric Car Course - Stellantis retreats from U.S. electric vehicle push after $22B loss

Stellantis, the automaker behind brands like Opel, Chrysler and Fiat, has announced a major shift in its strategy. The company will scale back its electric vehicle plans in the U.S. after facing heavy financial losses and a €22 billion write-down.

The troubles began after U.S. President Trump removed electric vehicle subsidies, hitting Stellantis hard. Rivals Ford and General Motors had already cut billions from their EV investments, so the company's move came as little surprise.

Stellantis revealed it would not pay a dividend this year due to the financial strain. A €15 billion portion of the write-down came directly from abandoning its U.S. EV push. The strategic reversal will also require €6.5 billion in cash outflows over the next few years.

Despite these challenges, Stellantis remains the third-largest automaker in North America, holding steady at 12-13% market share. However, competition from Tesla and traditional rivals is growing as EV adoption speeds up. To strengthen its finances, the company plans to raise up to €5 billion through new bond sales.

New CEO Antonio Filosa pointed to early signs of recovery, with second-half 2025 sales up 11% to 2.8 million vehicles. Yet, investors reacted poorly, sending Stellantis' stock to a record low after the announcement.

The company's pivot away from EVs in the U.S. marks a significant change in direction. With North America historically its biggest profit driver, Stellantis now faces the challenge of stabilising its position while managing high costs and shifting market demands. The success of its bond issuance and recovery efforts will be closely watched in the coming months.