Stellantis Takes a Hit, Shifts Gears

• Stellantis reports a substantial net loss of €22.3 billion for 2025, primarily due to write-downs related to its EV strategy.
• The company is scaling back its EV plans, opting to focus on a mix of electric, hybrid, and internal combustion engine technologies.
• North American operations show strong growth, driven by new products and increased production of trucks with Hemi V8 engines, becoming a key contributor to profitability.
• Despite the loss, shares rose following optimistic statements about North American performance and future growth strategies.

Big Loss, But Don't Count Us Out

Okay, folks, Jackie here. Even I take a tumble sometimes. Stellantis, eh? They took a hit, a big one – a €22.3 billion loss. Ouch. That's like dropping a priceless vase... repeatedly. But hey, even after a bad fall, you gotta get back up, dust yourself off, and try again. Remember, "Sometimes it's better to lose and do the right thing than to win and do the wrong thing." They're adjusting their electric vehicle plans, realizing maybe they went a little too fast, like trying to do a backflip before learning to stand straight.

North America to the Rescue

Now, here's where the story gets interesting. North America, they say, is their saving grace. Like finding a hidden stash of first aid kits after a particularly brutal stunt. Apparently, trucks with Hemi V8 engines are selling like hotcakes. People still love that raw power. And good for them, eh? This reminds me of a chase scene – sometimes you gotta switch vehicles mid-pursuit to get the job done. Speaking of the market, it seems like a good time to read Software Stocks Plunge: Is This the End of the AI Bubble.

EV Plans Get a Reality Check

So, they are pumping the brakes on the EV only future plan. They're not ditching EVs completely, mind you. It's more like adding a hybrid option. A bit of electric, a bit of gas. It's like mixing two different fighting styles to become a better martial artist. "Don't try to be like me. Be like yourself. Be individual." That's what they are doing - finding their own way to get the customer the vehicle they want.

The Cost of Miscalculation

The CEO basically said they overestimated how fast everyone would jump on the EV bandwagon. That's like thinking you can jump across a chasm in one leap, only to realize it's wider than you thought. But hey, at least they're admitting it. It takes courage to say, "Okay, we messed up, let's try something else."

Looking Ahead: A Return to Profitability

Stellantis is now focusing on fixing past mistakes and getting back on the road to making money. They're suspending dividends for a bit, issuing some bonds, and sticking to their forecasts for 2026. It's like tightening your belt and focusing on the basics. "I'm not afraid of dying, I'm afraid of not trying." I think they are definitely trying, eh?

Solid Performance in the Second Half

Despite the overall loss, the second half of 2025 wasn't all bad. They shipped a lot of vehicles, especially in North America, and revenue went up. It's like finding a few gold coins in a pile of dirt. Not enough to make you rich, but enough to keep you going. And hey, every little bit helps, right?