(Alliance News) - The stock market may not be an oracle, but it is a thermometer: and for Stellantis, it is showing a raging fever. Following the recent announcement of more than EUR20 billion in extraordinary charges, the company's shares continue to plummet. Since its market debut in January 2021, Stellantis has lost 49%; from its 2024 highs, the drop is a staggering 76%—the worst performance among global auto giants.
As Milano Finanza points out, the comparison is stark. Volkswagen has lost 3% over five years, Renault 5%, while Toyota has more than doubled in value. Ford is up 20% since 2021—despite write-downs on electric vehicles—and General Motors has surged by 128%.
Blaming everything on the European Green Deal seems simplistic: the stock market reflects fundamentals, which for Stellantis have deteriorated dramatically.
In the first half of 2025, EBIT plunged to EUR500 million from EUR8.4 billion the previous year, with a net loss of EUR2.2 billion and revenues falling from EUR85 billion to EUR74 billion. It is the only major group with operating profitability wiped out.
Other automakers have reduced but still positive margins: Toyota remains near 9%, GM at 6.9%, Renault at 6.5%.
Credit rating agencies have also downgraded the group, now on the brink of "speculative" status. Moody's forecasts negative cash flow even in 2026, marking the third consecutive year.
After the initial post-merger boom, with revenues soaring to EUR189 billion in 2023, sales have resumed their decline: EUR156 billion in 2024 and about EUR153 billion projected for 2025. Record profits—over EUR50 billion between 2021 and 2023—have given way to losses.
Carlos Tavares's strategy, based more on price hikes and supply discipline than on volume, supported margins in the short term but not structural growth: sales fell from over 6 million vehicles to 2.8 million in the first half of 2025.
Generous dividends—over EUR16 billion distributed—and more modest investments compared to competitors—EUR30 billion versus Toyota's EUR89 billion and Volkswagen's EUR50 billion-plus—have left the group more exposed to the shocks of the electric transition.
The new leadership under Filosa is now focusing on the US, with EUR13 billion in investments earmarked for the group's primary market. Europe remains an open question, with the risk of excess production capacity, especially in Italy. The company's revival hinges on this.
By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter
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