Stellantis (NYSE: STLA) suffered a historic collapse this morning, plunging more than 25% in a single session, which marks its worst day since the 2021 merger of Fiat Chrysler and PSA Group.
The carnage started today after management announced an “alarming” €22.2 billion ($26.5 billion) impairment charge, admitting that it drastically overestimated the pace of the global transition to EVs.
This massive “reset” includes €14.7 billion for scrapping failed product plans and adjusting to US emissions regulations, alongside €2.1 billion for resizing a bloated EV supply chain, the company confirmed.
Perhaps most damaging to investor confidence was the revelation that STLA will suspend its 2026 dividend to preserve its balance sheet. Year-to-date, Stellantis stock is now down some 30%.
Is Stellantis stock worse than Ford and GM?
While its Detroit rivals – Ford and General Motors – have also recorded billions in charges to pivot away from aggressive EV targets, the numbers at Stellantis are simply in a different league of pain.
The €22.2 billion charge is so massive that it actually exceeds STLA’s entire market cap.
In other words, the market is currently valuing the business at less than the cost of its EV mistakes.
Additionally, unlike GM and Ford, Stellantis suspended its 2026 dividend entirely, removing what can be described as a major “safety net” for those who may have been interested in buying STLA stock at the current, trimmed valuation.
STLA shares face other headwinds as well
The market is punishing Stellantis harder than it did Ford or General Motors, also because its issues go well beyond a failed EV strategy.
Under former CEO Carlos Tavares, Stellantis pursued a “margin over volume” strategy – pushing Jeep and Ram trucks’ prices to record highs (often exceeding $70,000), effectively ghosting its core middle-class buyer.
Plus, quality issues have alienated its customers in recent years as well.
Stellantis shares are crashing following today’s announcement, also because GM and Ford – while not perfect- didn’t experience the same “customer exodus” due to radical price hikes and reliability declines.
Inventory bloat remains an overhang for Stellantis
STLA shares are unattractive to buy on this dip also because the company is currently suffocating under a mountain of unsold cars.
At the end of 2025, Jeep’s inventory levels were sitting at a staggering 90-day supply, nearly double the industry’s healthy average.
To move these vehicles, STLA is forced to use “massive incentives” and fire-sale pricing, which destroys brand equity and crushes profit margins.
In contrast, GM has been praised for its “pricing discipline,” managing to keep inventory lean and transaction prices stable.
What Ford and GM have that STLA lacks
Finally, GM and Ford have successfully pivoted to “hybrid-first” strategies that resonate with US buyers – but Stellantis is only now frantically re-introducing Hemi V-8 and gas-powered models after realising they moved away from internal combustion too quickly.
While STLA is exiting joint ventures (like selling its stake in NextStar Energy), General Motors’ “Ultium” platform, despite early hiccups, is finally scaling, with EV sales growing 48% last year.
Meanwhile, it lacks something like Ford’s “Pro” business as well, which is a high-margin software-heavy powerhouse that generated consistent cash even when consumer sales lag.
Taken together, these insights suggest for Stellantis, the road to recovery remains far more treacherous than for its Detroit rivals.
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