Stellantis Plunges Over 25% in One Day After €22.2 Billion Loss from Misjudged EV Transition

Stellantis, the world’s fourth-largest automaker, announced on February 6 that it would record a massive €22.2 billion (approximately $26 billion) impairment charge due to a significant strategic overhaul of its electric vehicle (EV) plans, triggering severe market turmoil. The charge includes €14.7 billion in asset write-downs stemming from an overestimation of demand for battery-electric vehicles, €2.1 billion related to supply chain adjustments, €4.1 billion allocated to increased warranty provisions for quality-related issues, and €1.3 billion for restructuring costs associated with workforce reductions in Europe. CEO Antonio Filosa acknowledged that the company had previously been overly optimistic about the pace of the energy transition, straying from actual consumer demand and purchasing power. As a result, Stellantis’ shares on U.S. markets plunged 23.69% that day, with intraday losses briefly exceeding 26%. In Europe, the stock tumbled nearly 30% before closing down 25.24%, marking the first major "black swan" event in the automotive industry in 2026.