Jeep Maker Stellantis Books $26 Billion Charge in Historic EV Reset

By Trey Thoelcke Published Feb 6, 8:55AM EST

Quick Read

Stellantis (STLA) took a €22B charge for H2 2025 to reset its electric vehicle strategy amid weak demand.
Stellantis operating income collapsed in 2024, and gross margins compressed.
The charge will push Stellantis to a net loss in 2025 and eliminate dividend payments in 2026.

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Jeep Maker Stellantis Books $26 Billion Charge in Historic EV Reset — © Bill Pugliano / Getty Images News via Getty Images

Stellantis N.V. (NYSE: STLA | STLA Price Prediction) shares were halted after plunging 14.4% following the company’s announcement of a €22 billion charge for the second half of 2025. The Jeep parent is scaling back electric vehicle ambitions and resetting its product strategy to match slowing consumer demand for battery-powered vehicles.

The massive writedown reflects what Stellantis calls “recalibrating product plans to better match customer preferences, including reduced expectations for BEV products.” The charge will push the automaker to a net loss for 2025, eliminating any dividend payment in 2026.

This reset comes as Stellantis was already struggling operationally. The company’s operating income collapsed 83.5% in 2024 compared to 2023, while gross margins compressed from 20.1% to 13.1%. By Q2 2025, the company was posting negative operating income of €2.7 billion.

The pivot away from aggressive EV targets includes phasing out plug-in hybrid versions of the Jeep Wrangler, Grand Cherokee, and Chrysler Pacifica for the 2026 model year. Manufacturing challenges have also emerged, with Peugeot electric models delayed up to 8 months due to battery production difficulties.

Despite the turmoil, Stellantis posted 9% growth in Q4 2025 shipments, driven by a 43% surge in North America. The company now promises “Freedom of choice with a wider range of EV, hybrid, and advanced internal combustion engine vehicles” as it attempts to balance profitability with the industry’s electric transition.

With shares down 12.4% year-to-date and trading at $9.54, investors face a company in full restructuring mode with an Investor Day scheduled for May 21, 2026, to unveil its revised strategic direction.

About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.