Shares in Stellantis recorded their sharpest decline since the company’s 2021 listing, after the automaker announced it will book substantial exceptional charges in its 2025 financial results, according to AFP, cited by Agerpres.
Where Stellantis shares stand now
On the Paris Stock Exchange, Stellantis shares were down about 23% around 10:40 a.m., trading at €6.28 per share—nearly 80% below their March 2024 peak. Since the start of the year, the stock has lost almost 34%.
Read also: Tesla posts modest gains across selected European markets
The company previously said it will recognize €22 billion in exceptional charges in 2025, citing overly optimistic expectations for electric vehicle sales. “This is the cost of a deep but necessary reset of our business to put customers back at the center and support profitable growth,” Stellantis said. In 2024, the group’s net profit fell by 70% to €5.5 billion.
Sector-wide fallout
Analysts at Oddo BhF noted that while a reset had been widely expected, the scale far exceeds even conservative forecasts, adding they had anticipated around €7 billion in extra costs.
The sell-off spilled over into the broader European auto sector. Volvo fell 3.92% in Stockholm, Renault dropped 3.85% in Paris, and Volkswagen slid 2.23% in Frankfurt.
The charges will push Stellantis into losses, as the amount roughly equals the group’s combined net profits for 2023 and 2024 (€18.6bn and €5.5bn). Of the total, €14 billion relates primarily to restructuring its US product lineup.
Stellantis follows other US automakers revising EV ambitions. Ford has announced €19 billion in EV-related charges over three years, while General Motors plans €7 billion by the end of 2025.
The US EV market has also been hit by Trump administration policies, including looser emissions standards and the removal of federal EV purchase incentives.
Photo: The Business Times
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