Stellantis is priceless on Piazza Affari after the automotive group announced a change of strategy on electric vehicles which will cost 22 billion in charges, causing a loss in the second half of the year between 19 and 21 billion euros, accompanied by the suspension of the dividend in 2026 and the issuance of 5 billion in non-convertible perpetual hybrid bonds. The stock, which fails to trade at the start of trading, marks a theoretical decline of 11.8%%

The analysts

Stellantis flattens to the lows of the day, with the stock dropping 24% to 6.21 euros. The 22 billion euro restructuring scares the market, which did not expect monetary costs of 6.5 billion euros, and worries analysts, in light of a restart that is expected to take longer than expected. For Oddo the reset “is much greater than feared” and the cash outflows of 6.5 billion, announced by the company, are two or three times greater than what the market expected. Even for Equita the “cash-out of 6.5 billion to be spread over 4 years” is “well above” the broker’s expectations (“over 2 billion”) as well as “the consensus” while Banca Akros speaks of an amount “double” compared to its forecasts. “It is difficult to define today’s announcement as a clarifying event, in light of the uncertainty that still surrounds execution in the coming quarters”, writes Oddo.

For Citi, Stellantis’ forecast of stopping burning cash in 2027, returning to a positive industrial free cash flow, is still “highly uncertain”. Intermonte speaks of the “magnitude” of the restructuring “significantly larger than expected with a cash impact of 6.5 billion in the next 4 years” compared to a market capitalization, before the announcement, “of approximately 24 billion euros. while the 2026 guidance “although recovering, shows that the turnaround will take more time”.