Stellantis shares suffered a record drop after the automaker announced it is taking more than $26 billion in charges to reverse course on its electric vehicle strategy.
The company said in a press release that the write-off is mainly due to a reduction in electric vehicle demand resulting from “re-aligning product plans with customer preferences and new emission regulations in the US.” The cost of the automaker’s “reset” of its business is also related to the resizing of its EV supply chain.
Stellantis’s announcement resulted in shares dropping by more than 28% on Friday morning. The automaker is known for its popular brands, including Jeep and Chrysler.
“Over the past five years Stellantis has become a leader in electric vehicles and will continue to be at the forefront of their development,” Stellantis wrote in the release. “That journey continues at a pace that needs to be governed by demand rather than command.”
“Stellantis is committed to being a beacon for freedom of choice, including for those customers whose lifestyles and working requirements make the Company’s growing range of hybrid and advanced internal combustion engine vehicles the right solution for them,” it added.
