Stellantis said it would take a $26 billion hit after it overestimated the speed of the EV transition.
The car giant wanted all of its European sales and 50% of its US ones to be electric by 2030, and had spent heavily on factories, inventory, and R&D to achieve that goal. But consumers have switched more slowly than anticipated, forcing the company to write off much of its investment. Its share price fell 20% on the news.
Stellantis is not alone: BYD shares also fell after the Chinese firm announced January sales were the lowest in two years. At least six other Chinese car brands also announced sharp sales drops from December to January, partly related to a reduction in government subsidies.
