This Is How Much Money Automakers Lost Building EVs Last Year
Global automakers have recorded billions in losses as the industry pivots from earlier electric-vehicle growth plans due to slowing demand in key markets and shifting regulatory and political conditions.
The latest and largest charge comes from Stellantis, which disclosed $26.5 billion in writedowns during the second half of 2025. The announcement sent shares of the Dodge, Jeep, and Ram parent company tumbling more than 20 percent, dragging the stock to its lowest level in six years.
Stellantis CEO Antonio Filosa said what most of us have been thinking: the writedown is “the cost of over-estimating the pace of the energy transition”. Filosa pointed to changing consumer demand, evolving emissions rules in the United States, and a need to rebalance the company’s product portfolio as key factors behind the move.
Stellantis is far from alone. Ford announced in December that it would take a $19.5 billion writedown tied to its EV operations, while also cancelling several electric models and quickly shoveling cash back toward gasoline and hybrid vehicles.
Not to be left behind, General Motors followed in January, revealing a $6 billion charge related to scaling back EV investments, including $4.2 billion in cash costs tied to supplier contract cancellations and settlements.
In Europe, Volkswagen revealed a $6 billion hit connected to a major restructuring at Porsche. That play delayed or killed several planned electric models in favor of extending the life of hybrid and internal-combustion offerings, and included an impairment charge of about $3.5 billion.
In total, global automakers have booked $55 billion in charges related to rolling back their EV operations.
Our Take:
Across the industry, legacy automakers are facing pressure from newer, Chinese competitors that have been quicker to bring lower-cost EVs to market. Ford's continued bleeding in the EV space is clearly compelling the automaker to explore partnering with one of these established Chinese EV makers like Geely or Xiaomi. You just can't keep losing $20 billion a year.
EV adoption has slowed to a crawl in the United States, and at the same time, automakers seem to have discovered that listening to the people who plan to spend their money on their products might be a good idea. Everyone is scrambling to bring hybrids online and reintroduce cost-conscious internal combustion vehicles as average buyers are rapidly dropping out of the new vehicle market.
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An experienced automotive storyteller and accomplished photographer known for engaging and insightful content. Michael also brings a wealth of technical knowledge—he was part of the Ford GT program at Multimatic, oversaw a fleet of Audi TCR race cars, ziptied Lamborghini Super Trofeo cars back together, went over the wall during the Rolex 24, and wrenched in the intense IndyCar paddock.
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It says that consumers demands changed causing this .Thats bullschiff there was NEVER A DEMAND FOR EVS , conversely it was just the opposite.The last administration tried to force EVs on Americans by dictatorial policies from the epa(👎) through impossible emissions and mileage requirements .The vast majority of Americans don’t want ev’s and the sales show it as well as the horrendous depreciation .🤣🤣🤣🤣🤣🤣🤣
Agree that there never was much consumer demand for EV's. Government was trying to force it on us. Did they win the election, NO! We spoke! Only made sense (possibly) for city bound wealthy people with garages to install the charging stuff. Provide hybrids with a 20 year, 200,000 mile warranty on the battery (with no more than 10% degradation) and I might check it out.