Stellantis Posts €20 Billion Second-Half Loss After ‘Over-Estimating’ EV Transition

Global automotive giant Stellantis has reported a staggering €20 billion loss in the second half of 2025, attributed primarily to miscalculations in its electric vehicle (EV) transition. While Stellantis invested heavily in electrification to keep pace with the growing global EV market, the company acknowledged that it “over-estimated” the speed and cost efficiency of this shift, resulting in substantial financial charges.

Financial Performance and Loss Drivers

Stellantis’ second-half losses reflect the challenges of balancing traditional vehicle sales with large-scale EV investment. The company cited unexpected costs from slowing or canceling EV projects, supply chain disruptions, and higher-than-anticipated battery expenses as key contributors. Although internal combustion engine vehicles continued to provide revenue, they were insufficient to offset the massive expenditures linked to the EV transition.

EV Strategy Missteps

The financial hit underscores the risks inherent in the rapid electrification of a global automaker. Stellantis faced delays in launching key EV models, underestimated battery production costs, and had to recalibrate manufacturing lines. Industry analysts note that these missteps illustrate the complexity of scaling EV operations while maintaining profitability, even for established automotive giants.

Future Outlook and Strategic Adjustments

Despite the losses, Stellantis remains committed to electrification. The company plans to streamline its EV roadmap, focus on cost-efficient production, and invest in next-generation battery technologies. By recalibrating its approach, Stellantis aims to regain investor confidence, stabilize operations, and strengthen its competitiveness in the fast-growing EV market globally.

Conclusion

Stellantis’ €20 billion second-half loss highlights the high stakes of transitioning to electric mobility. While over-estimating the pace and cost of EV adoption hurt short-term profitability, the company continues to pursue long-term electrification goals. How effectively Stellantis adjusts its EV strategy in 2026 will be critical in determining its future position in the evolving global automotive landscape.