$26 Billion EV Gamble EXPLODES in Stellantis’ Face

Stellantis just absorbed a staggering $26 billion loss after betting the farm on electric vehicles American consumers never wanted, exposing the catastrophic costs of forcing green mandates over market realities.

Story Snapshot

Stellantis announces €22.2 billion ($26 billion) writedown after overestimating EV demand and facing plummeting sales
Global automaker cancels Ram 1500 BEV project, revives HEMI V-8 engines, and shifts to “freedom of choice” strategy with hybrids and gas vehicles
Industry expert calls EV push “the single capital allocation mistake in the history of the automotive industry” with over $100 billion in losses sector-wide
Stellantis suspends 2026 dividends, sells battery plant stake, and commits $13 billion to restore customer-focused products amid 24-29% stock plunge

Massive Writedown Exposes Green Energy Fantasy

Stellantis, the automotive giant controlling Jeep, Ram, Chrysler, Fiat, Peugeot, and Opel, disclosed on February 6, 2026, that it will take a €22.2 billion charge to correct years of misguided investment in electric vehicles that customers refuse to buy. The writedown includes €14.7 billion for scrapping failed product plans, €5.4 billion for warranty problems and workforce reductions, and additional costs tied to cancelling EV projects like the Ram 1500 battery-electric truck. This represents the largest single loss by any automaker globally, dwarfing write-offs by competitors and proving what common-sense Americans already knew: forcing expensive, impractical EVs on consumers breeds financial disaster.

Former Leadership’s EV Obsession Drives Company Off Cliff

Under former CEO Carlos Tavares, Stellantis aggressively pursued electrification to satisfy regulatory mandates rather than customer needs, pouring billions into battery supply chains, EV platforms, and products nobody wanted. The company’s sales collapsed in 2025, dropping 5.99 percent in Europe and 3 percent in the United States, while quality issues forced massive warranty provisions totaling €4.1 billion. New CEO Antonio Filosa acknowledged the company “over-estimated the pace of the energy transition that distanced us from real-world needs,” a polite way of admitting the previous regime ignored market signals in favor of green ideology. This top-down arrogance cost shareholders dearly, with stock prices plummeting 24-29 percent immediately after the announcement.

Customer-Driven Strategy Replaces Regulatory Pandering

Stellantis is now pivoting to what it calls a “freedom of choice” strategy, offering consumers electric vehicles, hybrids, and traditional internal combustion engines instead of ramming unwanted battery cars down their throats. The company cancelled the Ram 1500 BEV, reintroduced the beloved HEMI V-8 engine, and brought back the Jeep Cherokee hybrid to meet actual demand. Stellantis committed $13 billion to North American product development, focusing on extended-range EVs for pickup trucks and SUVs where they make practical sense, alongside gas-powered vehicles Americans prefer. The company also sold its 49 percent stake in a Canadian EV battery plant to LG Energy Solutions, cutting losses on stranded infrastructure built for demand that never materialized.

Industry-Wide EV Collapse Validates Conservative Warnings

Stellantis is far from alone in this debacle. General Motors wrote down $7 billion in 2025 with more expected in 2026, Ford faces $19 billion in phased losses through 2027, and Volkswagen absorbed $6 billion cutting Porsche EV projects. John Murphy, managing director at Haig Partners, described the industry’s EV gamble as “the single capital allocation mistake in the history of the automotive industry,” projecting over $100 billion in total write-offs. These losses stem from government mandates and environmental activists pressuring automakers to abandon proven technology for expensive alternatives consumers don’t want. High EV costs, inadequate charging infrastructure, and range limitations made these vehicles impractical for most families, validating concerns conservatives raised for years while being dismissed as anti-progress.

Financial Damage Spreads Beyond Balance Sheets

The immediate fallout includes Stellantis suspending its 2026 dividend, depriving shareholders of returns while management cleans up the mess. The company faces €6.5-7.7 billion in cash outflows over four years, though it maintains €46 billion in liquidity representing 30 percent of net revenues. European employees face workforce reductions tied to €1.3 billion in restructuring charges, while suppliers dependent on EV component orders confront disrupted contracts and cancelled projects. The broader economic impact signals a slower transition to electric vehicles than regulators demanded, potentially delaying emission targets politicians set without consulting consumers or manufacturers about feasibility. This serves as a textbook example of government overreach distorting free markets and destroying shareholder value through ideologically driven policy disconnected from economic reality.