Stellantis announced a “reset” of its business after its massive investments in electric vehicles failed to produce a return. The company announced on Friday that it would incur costs of over $26 billion. – reports CNN.
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The sharp drop in Stellantis share prices on Friday reached up to 30 percent at times. At the close of the stock exchange it was 25%.
The strategy revision comes after similar — and also costly — actions by Ford and General Motors in recent weeks.
Declining interest in electric cars is a problem for manufacturers. The company said in a statement that the transition to electric vehicles “must be driven by demand, not by mandate” and that it strives to be a “symbol of freedom of choice” for customers.
The estimated net loss for the second half of 2025 is expected to range from EUR 19-21 billion, with revenues estimated at EUR 78-80 billion.
See also: Money for electric cars may run out soon
Has Donald Trump thwarted your plans?
Many U.S. automakers have invested heavily in electric vehicle plans in response to tough environmental regulations introduced by the Biden administration. They also expected some states to follow California's lead and ban the sale of gasoline vehicles within a decade.
However, the Trump administration has rolled back emissions regulations as well as financial support for electric vehicles. It also undermines the power of states to enact their own, stricter regulations, CNN notes.
Demand for electric cars was disappointing
The company announced that in the second half of 2025 recorded write-offs amounting to approximately USD 26 billion. Stellantis CEO Antonio Filosa said they “largely reflect the costs of overestimating the pace of the energy transition.”
Highlighting its forecast of lower demand for electric vehicles, Stellantis said most of the costs — $17.37 billion — is related to “adapting product plans to customer preferences and new emission regulations in the USA”.
See also: Good news for fans of combustion cars. The Germans are getting their way
Electrics in Europe
A recent change in regulations in Europe also bodes ill for the transition to cleaner cars, CNN says.
The European Union planned to ban the sale of new vehicles with combustion engines by 2035. However, in December, after pressure from car manufacturers, the EU's executive body stated that the ban would only apply to 90 percent. new vehicles. This means that the remaining 10 percent of new cars produced after 2035 may still be plug-in hybrids or cars with combustion engines.
European demand for electric vehicles is lower than carmakers expected, which is hampered by insufficient charging infrastructure on the continent.
Source: CNN
