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00:00 Jared
Shares of Stellantis cratering as the company switches gears on its EV business. Yahoo Finance’s Pras Subramanian joins us now with the details.
00:08 Jared
Pras, I had to do a double take. Over 20 billion euros in charges, six and a half billion uh in cash out over four years. By the way, no dividend this year and the stock is trading like a penny stock. What’s going on?
00:23 Pras
Yeah, Jared, I think that stock move is showing you that it really caught investors and and us in the in the sort of the the the reporter community by by by by surprise, right?
00:32 Pras
So you had a notice, note a $26 billion US charge uh stemming from that EV pivot. Uh it follows Ford and GM here doing the same same thing but not to this extent. You know, 7.7 billion in US dollars, that’s a cash payout over the next four years and a 17.34 billion non-cash charge hitting the balance sheet for the second half of 2025 results. You know, so, like I said, they’re canceling upcoming EVs, they’re canceling some current EVs that are in the market, not necessarily here but also but also in Europe and other places.
00:59 Pras
The market, so basically the the gist of it, the market just isn’t there for for Stellantis’s vehicles, right? Their EVs they have on offer and they’re even late to come to the game in terms of what they’re doing. They still took a massive charge here.
01:10 Pras
So, you’re going to pivot more to gas and gas gas powered cars and trucks. Uh also pivoting to more US manufacturing. That comes as the Trump administration brought back some of those EV or sorry, these gas emissions standards and when it wants to encourage more US production.
01:23 Pras
So that’s what we’re seeing here. You know, the other big issue that Ram, I’m sorry, that Stellantis has is is the product portfolio. You know, Ram is doing quite well with the pickups, but Jeep is taking some big hits recently. Dodge is essentially just two vehicles and Chrysler’s one. So the so the concern here for investors, yeah, you took a big charge, but do you have the products to sort of surmount that?
01:38 Jared
Yeah, lots of surprises and lots of resets in the EV world. Thank you for that, Pras.
01:43 Pras
Thank you.