Stellantis Shares Halted After €22.2B EV Writedown

Key Developments in Stellantis Trading

Milan-listed shares of automaker Stellantis were halted from trading following a sharp 14.4% decline. The suspension came after the company announced significant financial charges related to its revised electric vehicle strategy.

Overview of the Financial Announcement

Stellantis disclosed it has booked charges of approximately 22.2 billion euros, equivalent to $26.5 billion, for the second half of 2025. This writedown is a direct result of the company scaling down its development plans for electric vehicles. The company also projects a preliminary loss between 19 billion and 21 billion euros for the same period.

Impact on the Market and Shareholders

Before the halt, LSEG data indicated shares were pointing to a 55.8% drop. In a further blow to investors, Stellantis confirmed that it will not pay a dividend this year, reflecting the financial pressure from these strategic changes and projected losses.

Outlook

The market is now closely watching for further communications from Stellantis regarding its long-term EV strategy and financial recovery plan. The significant writedown signals a major pivot in the automotive industry's approach to electrification.

FAQ

Q: Why were Stellantis shares halted?
A: Trading was halted after the stock price dropped sharply following the announcement of a 22.2 billion euro charge related to its revised electric vehicle plans and a projected loss.

Q: Will Stellantis pay a dividend this year?
A: No, the company announced it would not pay a dividend this year due to the significant projected financial losses.

Source: Investing.com