• Stellantis (STLA), GM (GM), and Ford (F) announce massive EV-related write-downs totaling around $55 billion, driven by weaker-than-expected U.S. demand and expired federal tax credits.
  • Stellantis leads with a €22-22.6 billion ($26-26.5 billion) charge—the largest single instance—announced on Friday, February 13, 2026, following similar moves by Ford ($19.5 billion in December 2025) and GM ($6-7 billion in January 2026).
  • The industry pivots back to hybrids and gas vehicles, with Stellantis selling its battery stake and canceling EV models, while U.S. EV sales fell ~30% post-tax credit expiration.

U.S. automakers are facing a stark reality check as electric-vehicle hype fades, forcing the Detroit Big Three—GM, Ford, and Stellantis—to announce over $50 billion in EV-related write-downs. This reflects a broader industry "EV retreat" as of early 2026, with Stellantis' €22-22.6 billion charge—the largest single instance—announced on Friday, February 13, 2026, following similar moves by Ford ($19.5 billion in December 2025) and GM ($6-7 billion in January 2026).

Stellantis, a global automaker formed in 2021 via the Fiat Chrysler Automobiles-PSA merger, is at the forefront of this shift. CEO Antonio Filosa, who took over in May 2025, blamed predecessor Carlos Tavares for "poor execution" and overestimating the pace of the EV transition. "We misjudged the energy shift," Filosa said in a statement, adding that efforts to restructure its EV strategy have hit a snag. The company sold a 49% stake in a Canadian battery plant to LG and canceled EVs like the electric Ram 1500 and Jeep Renegade, while ending plug-in hybrids. Without these adjustments, the company would be forced into deeper losses, according to people familiar with the matter.

Recent financial performance underscores the strain: Stellantis' 2025 profit fell 70% under prior leadership, with $4.8 billion in EV losses last year and projections of $4-4.5 billion more in 2026. Shares dropped 25-29% post-announcement to around $7.10, a stark contrast to earlier optimism. The company is now focusing on North American products like hybrid Jeep Cherokees and mid-size pickups, backed by a $13 billion investment. Attempts to reach Filosa for further comment were unsuccessful.

Economic factors are driving this pivot. U.S. EV sales fell approximately 30% after the expiration of a $7,500 federal tax credit, combined with relaxed efficiency mandates. This has forced project cancellations, layoffs, and a shift back to gas-powered vehicles, contributing to an estimated $55-100 billion in industry-wide stranded EV assets. Meanwhile, global trends show a divergence: China's BYD (BYDDF) delivered over one million vehicles internationally, surpassing Tesla (TSLA), while Volkswagen (VWAGY) added $3.5-6 billion in write-downs. Analysts call it "the single biggest capital misallocation" in auto history, with media labeling it an "EV meltdown."

Looking ahead, the short-term outlook includes more write-downs in 2026, with Stellantis projecting $4-4.5 billion in EV losses and a focus on launches like the Ram REV extended-range model. Long-term, experts predict a realignment toward hybrids, pickups, and SUVs, with total writedowns potentially exceeding $100 billion unless demand rebounds. This correction, which began with Volkswagen's charges in September 2025, highlights the challenges of overhyping the energy transition versus real consumer demand. Correction: An earlier version misstated the total write-downs; it is around $55 billion across the Detroit Three and others, not over $50 billion exclusively for them.