Stellantis Faces Legal Probe Over US$26bn EV Writedown

US law firm Levi & Korsinsky has launched an investigation into Stellantis over potential breaches of federal securities laws. 

The investigation centres on whether the carmaker's public statements about its electric vehicle (EV) plans aligned with internal management data.

The law firm is examining the period between Stellantis' third quarter of 2025 earnings call and a major financial disclosure on 6 February 2026. During this time, investors were left without updated guidance, a communication gap that preceded a record 28% single-day share price collapse.

Strategic miscalculation on energy transition

The 6 February disclosure revealed that Stellantis had significantly overestimated the pace of global EV adoption, forcing a comprehensive strategy reset.

Antonio Filosa, CEO of Stellantis, said: "Our 2025 full-year results reflect the cost of over-estimating the pace of the energy transition and of the need to reset our business around our customers' freedom to choose from the full range of electric, hybrid and internal combustion technologies."

Unusual charges reached US$30bn for the year, driven primarily by the scaled-back EV strategy and shifts in regulatory frameworks. 

Record losses reshape corporate priorities

Financial results for the second half of 2025 reflect a US$23.7bn net loss, contributing to a full-year net loss of US$26.3bn. This represents a reversal from the US$6.5bn profit recorded in 2024.

Net revenues for the year stood at US$181bn, a 2% decrease from 2024, influenced by foreign exchange headwinds and pricing pressure. 

Market pressure had been building prior to the disclosure, with Wall Street Zen cutting its rating to "Sell" on 31 January and Morgan Stanley issuing a downgrade on 3 February.

Financial restructuring addresses cash pressures

Looking ahead, Stellantis expects US tariffs to add approximately US$1.9bn in costs during 2026, compounding the financial pressure from the writedown.

To preserve balance sheet strength, the board has authorised suspension of the 2026 dividend and the issuance of up to US$5.9bn in hybrid bonds. 

The recalibrated strategy involves a broader powertrain approach designed to meet customer "freedom of choice". In North America, emphasis is shifting back towards internal combustion engine and hybrid products, including the Ram 1500 HEMI V8.

Antonio notes in the company's earnings statement that the second half of the year showed initial signs of progress: "In the second half of the year, we began to see initial, positive signs of progress with the early results of our drive to improve quality, strong execution of the launches of our new product wave and a return to top-line growth."

The company expects progressive improvements from the first half of 2026 into the second half, with Antonio emphasising that 2026 priorities focus on closing execution gaps and returning to profitable growth.