Stellantis Stock Collapses As Jeep Maker Takes $26 Billion Hit In Latest EV Pivot

[AzScorpion]

Wow, Stellantis surpasses Fords losses (19.5B) with their 26 billion in losses. Their stock right now is down to $7.18 where a year ago it was at a high of $14.05 and two years ago at $29.18. A 25% drop in one day is a heck of a loss. Does whoever running this company ever look at their year over year losses and think "maybe we're heading in the wrong direction?" But of course when you're To Big To Fail and know the government will bail you out who cares about loosing billions.

https://finance.yahoo.com/news/stel...billion-hit-in-latest-ev-pivot-134546771.html

Stellantis (STLA) reported a massive charge of 22 billion euros ($25.94 billion) as it resets its electric vehicle business.

Cash payments of 6.5 billion euros ($7.7 billion) will be paid out over the next four years, and charges totalling 14.7 billion euros ($17.34 billion) will be taken against the company’s 2025 second-half results, Stellantis said. The charges won’t impact Stellantis adjusted operating income, however.

Stellantis stock tumbled 25% in early trade Friday.

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[Chris M]

Wow, Stellantis surpasses Fords losses (19.5B) with their 26 billion in losses. Their stock right now is down to $7.18 where a year ago it was at a high of $14.05 and two years ago at $29.18. A 25% drop in one day is a heck of a loss. Does whoever running this company ever look at their year over year losses and think "maybe we're heading in the wrong direction?" But of course when you're To Big To Fail and know the government will bail you out who cares about loosing billions.

https://finance.yahoo.com/news/stel...billion-hit-in-latest-ev-pivot-134546771.html

Took that loss because of the EV failure to launch.

 

[AzScorpion]

Took that loss because of the EV failure to launch.

Sadly they all did this and put all their eggs into one basket. That's a big no no and one of the first things they teach you in business but I guess some didn't get the message.

 

[TruckBox]

What? Are the 6 cars they're making under 10 badges not selling?

 

[Dr_Strangelove]

What? Are the 6 cars they're making under 10 badges not selling?

The 4* EV's they developed over the last few years to sell under 10 badges - they decided they're not going to sell.


*I don't actually know how many products they developed, but they're all cancelled regardless.

 

[Grumpaw]

All is not lost....you will still be able to buy a battery Stellantis.....

 

[LawnMM]

EVs sure are great

 

[AzScorpion]

The 4* EV's they developed over the last few years to sell under 10 badges - they decided they're not going to sell.


*I don't actually know how many products they developed, but they're all cancelled regardless.

I guess they couldn't survive without the government subsidies. I always say if a product is so great it should be able to sustain itself without any subsidies.

Take solar. I bought it for my last house up in Goodyear back when they had the 20% federal tax incentives along with a $1,000 AZ state incentive. Also the electric company APS had net metering (rolling your extra kWh into the next month) which made this a win win. By the time June rolled around I'd have around 2,300 kWh "banked" which I could use towards my summer bills when the demand was higher and my production wouldn't keep up. They take your banked kWh (that were fed back to the electric company in the prior months) and add them to your usage.

About 3 years after purchasing it they did away with the net metering but luckily everyone was grandfathered in for 20 years. It was attached to the house so it made it more valuable (for me) when I sold it that that rolled over to the next owner. I'd love to get it again here but because they did away with all the incentives the ROI isn't worth it now. One great example how something they pushed really doesn't work for the average person unless there's subsidies.

 

[mtsoxfan]

I'm not sure why net metering is going away, or not utilized to begin with. With everything computerized, how much expense is there to net metering? In CT, I'd need 6k banked to feel good about getting through winter.
Some states even have goals to reach a % of alternative sources by a certain date. I know VT does. And while homeowners production is a drop in the bucket, they can still claim it in their totals.
As far as subsidies, It would have only extended my breakeven point by a couple more years if I didn't receive. In VT, not enough sun for the breakeven point to be short enough for me to invest again.

 

[AzScorpion]

I'm not sure why net metering is going away, or not utilized to begin with. With everything computerized, how much expense is there to net metering? In CT, I'd need 6k banked to feel good about getting through winter.
Some states even have goals to reach a % of alternative sources by a certain date. I know VT does. And while homeowners production is a drop in the bucket, they can still claim it in their totals.

The net metering is a state/local thing and not federal. When we moved to AR I inquired about solar and they still had net metering there but they too were taking it away as of 8/2024. Unless you build your own array like ED @Fordup did it doesn't make sense to purchase a system if your state doesn't still have the net metering. It is fairly easy to build your own but it does help if you have a good area to put the array up. I'd prefer a standing one or one on top of a carport. I never liked the idea of it up on my roof and we were lucky that it was installed properly and never had any leaks. But if/when you need a re-roof you have to pay them to come and remove and replace them which is now pretty costly.

 

[dtech]

Easy to single out EV and clean engery investments but beginning with the Great Depression the US governemt has either subsized or paid subsidies in many industries and projects - agriculture is annually subsidized with the highest year to the tune of $45 billion. Things like the rural electrification bill, construction of Hoover Dam , the Interstate system - all paid in large part or entirety by the US gov. And yes for decades the gov gave oil and gas companies significant amounts of money. You can see below that FoMoCo was no 3 since 2020 for receipt of subsidies. Amazon is no 6 on the list - helping to keep Jeff Bezos up there amongst the world's wealthiest. Back in the era of industrial development - steel, railroads, mining, energy all received healthy handouts from the gov.

 

[Fordup]

The net metering is a state/local thing and not federal. When we moved to AR I inquired about solar and they still had net metering there but they too were taking it away as of 8/2024. Unless you build your own array like ED @Fordup did it doesn't make sense to purchase a system if your state doesn't still have the net metering. It is fairly easy to build your own but it does help if you have a good area to put the array up. I'd prefer a standing one or one on top of a carport. I never liked the idea of it up on my roof and we were lucky that it was installed properly and never had any leaks. But if/when you need a re-roof you have to pay them to come and remove and replace them which is now pretty costly.

I don't think costs will go up with the end of taxpayer credits. Chinese companies are cutting the price of products to keep the boat loads coming in. The problem is most don't have extra money these days to invest in long term savings on utilities and transportation. Solar is basically worthless in the winter up here just like ev's.

 

[Texasota]

Sadly they all did this and put all their eggs into one basket. That's a big no no and one of the first things they teach you in business but I guess some didn't get the message.

Yes they did. But in their defense, the previous administration created emissions regulations, penalties, and the emission's credit purchase system that it was a full fledged back door mandate. If these companies had not invested heavily in EVs they would have been penalized into near extinction.

 

[AzScorpion]

Yes they did. But in their defense, the previous administration created emissions regulations, penalties, and the emission's credit purchase system that it was a full fledged back door mandate. If these companies had not invested heavily in EVs they would have been penalized into near extinction.

True, but you'd "think" by now they'd know that with every changing of the guard comes new rules & regs. Also, if these EVs were as great as they were said to be then they still should've been able to sustain themselves or at least broke even. Loosing billions just tells you that most Americans don't want them right now and they still have a very long way to go before we are. I do think for some they're the perfect vehicle (retired and/or those that do short trips) but for many they're just not practical. I'm not saying they're bad, they're just not for everyone and should've never been forced on us.

 

[dtech]

Much of it comes down to lack of a comprehensive engery plan , to me it's extremely wasteful to have spent many billions in public and private investments in clean energy then change course, arguably it was much too much too soon. I'm still shocked though that Texas leads the way in wind power - somewhat proof that some forms of clean energy can be competitive with other energy sources. And there is a ww surplus of oil and gas - and I've been watching for a repeal of one of the costliest forms of subsidized energy - ethanol. Don't hear a thing because the agricultural lobby is powerful and as it turns out most corn is grown in red states. Rising utility rates tied to massive AI and digital currencies will fuel continued growth in solar and wind. I've even see suggestions that data centers will need to be constructed in outer space - and if you think that space launches aren't heavily subsidizied - think again.

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