Stellantis (STLA) shares plunged over 25% after announcing a €22.2 billion impairment charge for a “major EV reset.” Stock is down 35% from year-to-date high. Market values STLA below cost of EV mistakes, signaling loss of confidence. Dividend suspension may lead to further decline.

Investors advised against buying STLA shares due to alienation of core middle-class buyers, competition from Ford and GM, quality issues, and excessive inventory supply. Profit margins unlikely to improve soon, especially with lagging hybrid vehicle production compared to Japanese automakers.

Wall Street analysts rated STLA shares at “Hold” even before impairment charge announcement. Some may revise estimates lower in coming days. Lowest price target at $6 suggests potential 17% downside from current levels. Bears are firmly in control as stock trades below key moving averages.

Read more at Yahoo Finance: How Should You Play the Bloodshed in Stellantis Stock Today?