Stellantis, the automotive conglomerate formed in 2021, recently reported a net loss of $22.3 billion in 2025. This marked the first time the company has been in the red since its inception, largely due to what now appears to be a failed shift towards electric vehicles. The company accrued $25.4 billion in unusual charges related to this misstep.
The company’s foray into electric vehicles was met with significant challenges. Stellantis overestimated the demand for EVs and failed to capture the interest of consumers. The cancellation of EV models and the release of lackluster products highlighted the shortcomings of Stellantis’ electric strategy.
In the U.S., Stellantis lagged behind in launching EVs, with offerings such as the Fiat 500e, Dodge Charger Daytona, and Jeep Wagoneer S receiving negative reviews and low consumer interest. In Europe, the Citroen e-C3 and Peugeot e-208, while popular, still fell short in sales compared to competitors like the Renault 5 E-Tech.
Stellantis’ CEO, Antonio Filosa, admitted that the company overestimated the pace of the transition to electric vehicles. As a result, Stellantis is now refocusing its efforts on providing consumers with the freedom to choose from a range of electric, hybrid, and combustion engine vehicles. This shift in strategy comes after Stellantis faced challenges in its EV supply chain, warranty estimates, and workforce-related costs.
Despite the setbacks, Stellantis saw signs of improvement in the second half of 2025. Revenue increased by 10%, with deliveries up by 11% in North America. The company’s traditional profit centers, Ram and Jeep, showed promise with efforts to address quality issues, pricing, and product offerings.
Filosa expressed optimism about the company’s future, citing improved quality, successful product launches, and a return to revenue growth in the second half of the year. Stellantis aims to learn from its missteps in the electric vehicle market and adapt its strategy to meet the evolving demands of consumers while maintaining a diverse product portfolio. Stellantis, the multinational automotive manufacturer formed from the merger of Fiat Chrysler Automobiles and PSA Group, has had a busy year with major new model launches in 2026. The company has been focusing on closing the execution gaps of the past and adding momentum to its return to profitable growth.
Last year, Stellantis introduced several new models, with a heavy emphasis on hybrids. While many of these models also offered electric variants, the only bespoke electric vehicle that was launched was the DS N°8, a luxury rival to the Tesla Model Y. However, one surprising move that symbolized the challenges of the EV transition was Fiat’s decision to reintroduce a combustion engine option for the Fiat 500, which was originally launched as a pure electric vehicle.
In a surprising turn of events, Stellantis announced the cancellation of the fully electric version of the Ram 1500 pickup, opting instead to offer an extended range powertrain for the model. The company also discontinued the fully electric Maserati MC20 Folgore, despite years of development. The decision to pull the plug on these electric models raised questions about Stellantis’ commitment to electric vehicles.
Stellantis currently offers a range of electric models, many of which share the same platform, batteries, and motors. While the company’s electric vehicles may look different on the outside, they are essentially the same vehicle underneath. Reviews of Stellantis’ electric vehicles have been mixed, with some critics noting that they do not stack up well against the competition in the EV market.
Despite these challenges, Stellantis remains committed to its electric vehicle strategy. The company plans to continue expanding its lineup of electric models and improving the technology and performance of its electric vehicles. With a renewed focus on profitable growth and closing execution gaps, Stellantis is poised to make further strides in the electric vehicle market in the coming years.