Stellantis will book €22.2 billion in charges tied to scaling back electric-vehicle plans, marking one of the largest writedowns in the auto industry as demand weakens. The charges, recorded in the second half of 2025, include €6.7 billion in research and development write-downs and €6.5 billion in cash payments over four years.

Wolfe Research upgraded Stellantis to Peer Perform from Underperform after the stock fell about 25% following the pre-announcement. The firm views the writedown as a reset point after a sharp share price decline, with the scale exceeding investor expectations. Unlike some U.S. peers that expense R&D as it occurs, Stellantis had capitalized those costs, making comparisons with Ford and GM less direct.

The brokerage expects some sequential improvement in earnings and free cash flow in 2026 and 2027, helped by new vehicle launches that could support U.S. market share. However, Wolfe also said expectations may build ahead of Stellantis' strategy update in May, though it does not expect major changes that would materially alter the company's recovery path. The firm expects free cash flow to remain negative in 2026 and only reach breakeven in 2027, citing execution risks and intense competition in Europe and other markets.