Shares in Stellantis (STLAM) plunged 20% to €6.7 in Milan after the car manufacturer warned it had taken €22 billion of electric vehicle-related charges for H2 2025.
The struggling automaker warned that in recognition of losses racked up in full year 2025, it won’t pay a dividend for 2026. To shore up its balance sheet, Stellantis plans to raise up to €5bn by issuing hybrid bonds.
| Share price: €6.7 (-20%) | PE: 6.4 |
| Market cap: €23.6bn | Yield: 4.5% |
Having succeeded Carlos Tavares in the hot seat last summer, CEO Antonio Filosa is attempting a turnaround of the automaker. This includes a focus on its Jeep and Ram brands in the US.
Filosa said the reset is part of the decisive process started in 2025 to ‘once again make our customers and their preferences our guiding star’.
He added: ‘The charges announced today largely reflect the cost resulting from an overestimation of the pace of the energy transition, which distanced us from the real needs, possibilities, and desires of many car buyers. They also reflect the impact of previous issues, which our new team is progressively addressing.’
Stuck in the slow lane
For 2026, the auto giant behind Italian nameplates Fiat and Alfa Romeo as well as French brand Peugeot and US nameplate Chrysler, is targeting a modest mid-single-digit percentage increase in revenue.
Stellantis is also forecasting a low-single-digit increase in its skinny adjusted operating margins.
Created through the 2021 merger of Italian-American automaker Fiat Chrysler and France-based Groupe PSA, the formation of this transatlantic automaker has not been a great success.
The shares are down 50% over one and five years and trade on a single-digit forward PE ratio of 6.4. That depressed rating demonstrates investors’ scepticism toward the turnaround which we share. Avoid.
Read the press release here: https://www.stellantis.com/en/news/press-releases
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