Black Thursday for Stellantis: the company’s stock plunged more than ten percent on Wall Street. The sharp drop surprised analysts and investors, since the group’s quarterly results looked solid. The market’s reaction, however, was driven less by past performance and more by what the company hinted about its future.
Stellantis stock falls despite positive earnings as investors fear new costs under Filosa
In the third quarter of 2025, the group posted a 13% increase in revenue, reaching €37.2 billion ($40.3 billion). Deliveries rose sharply, led by the North American market, which had long been Stellantis’ weak link. Europe, the Middle East, and Africa showed positive trends, while South America closed with a slight decline.
CEO Antonio Filosa, who took over in June after Carlos Tavares stepped down, commented on the results with cautious optimism. He spoke of “positive sequential progress” and “solid performance.” Filosa emphasized the importance of the $13 billion investment plan announced to boost U.S. production and create 5,000 new jobs.
Despite the upbeat tone, Filosa’s words failed to calm investors. The quarterly report contained one detail that hit hard, a forecast of new extraordinary costs in the second half of the year. The company mentioned “additional expenses linked to major updates in strategic and product plans,” along with “costs related to regulatory changes, macroeconomic pressures, and internal adjustments.”
In other words, Stellantis will have to spend more to reorganize several divisions and adapt its strategies to new market conditions. Filosa admitted he had accelerated internal corrections that began in January to fix mistakes accumulated in previous years, when the FCA–PSA merger was still finding its balance.
Analysts believe these actions include a deep review of European industrial plans, cuts to low-profit models, and a reshaping of the dealer network. In the short term, these efforts will likely lead to higher costs and lower margins.
Investor sentiment was further hit by a review of warranty-related expenses, which will require additional reserves and possible one-time charges. Filosa explained that his top priority is to rebuild trust in product quality and supply chain stability, but the market fears the reorganization could take longer than expected.
The paradox is clear: while Stellantis is showing an industrial recovery, financial confidence is faltering. In the third quarter, shipments rose 13%, reaching 1.3 million units, and U.S. inventory levels returned to normal. Still, the stock market read the results as a mixed signal with uncertain outlooks.
