Stellantis has announced a remarkable $26.5 billion loss due to the discontinuation of some electric vehicle projects. This declaration caused the company’s stocks to plummet by over 22%. CEO Antonio Filosa candidly acknowledged that previous expectations for electric vehicle demand were “too optimistic.” Stellantis, which owns brands like Chrysler, Jeep, Dodge, and Ram, has become one of the largest automakers affected by the waning interest in electric vehicles. The size of the write-offs has exceeded even the losses Ford and General Motors faced after the removal of federal electric vehicle subsidies in the United States. For comparison, GM previously reported about $7 billion in losses due to adjustments in its electric vehicle strategy.
Ambitious Electrification Plans
The ambitious plans for complete electrification were laid down by former CEO Carlos Tavares. He anticipated that by 2030, electric vehicles would account for 100% of Stellantis’ sales in Europe and 50% in the US. However, a decline in sales in the American market, where the company heavily relies on high-margin Jeep and Ram pickups, led to his resignation in 2024. Antonio Filosa, who took over Stellantis last summer, has announced a comprehensive strategic overhaul. According to him, the new developmental model will be centered around the real preferences of clients in each region. Meanwhile, market data confirm the cautious approach of automakers: in 2025, the share of fully electric cars stood at 19.5% of sales in Europe and only 7.7% in the United States.
Recent Market Developments
After the cessation of federal subsidies, many consumers in the US have delayed their transition to electric vehicles, affecting overall demand. Stellantis is now focusing on innovation and regional adaptation to maintain competitiveness. Antonio Filosa has emphasized a balanced approach, recognizing diverse market needs beyond mere electrification. This includes enhancing the performance and features of traditional models while exploring hybrid options as feasible transitional solutions.
Competitors’ Response
While Stellantis restructures, other automakers like Ford and Tesla are re-evaluating their strategies. There is a notable industry shift towards sustainability, with companies investing in improved battery technology and infrastructure to support electric and hybrid vehicles. These trends are expected to shape the future market, potentially reviving consumer interest with more cost-effective and technologically advanced options.
