{"id":58470,"date":"2026-02-13T12:38:25","date_gmt":"2026-02-13T16:38:25","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/detroits-50-billion-ev-reckoning-big-three-face-massive-write-downs-as-demand-cools\/58470\/"},"modified":"2026-02-13T12:38:25","modified_gmt":"2026-02-13T16:38:25","slug":"detroits-50-billion-ev-reckoning-big-three-face-massive-write-downs-as-demand-cools","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/detroits-50-billion-ev-reckoning-big-three-face-massive-write-downs-as-demand-cools\/58470\/","title":{"rendered":"Detroit\u2019s $50 Billion EV Reckoning: Big Three Face Massive Write-Downs as Demand Cools"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>General Motors (<a href=\"\/stock\/GM\">GM<\/a>)<\/strong>, <strong>Ford (<a href=\"\/stock\/F\">F<\/a>)<\/strong>, and <strong>Stellantis (<a href=\"\/stock\/STLA\">STLA<\/a>)<\/strong> have recorded over <strong>$50 billion<\/strong> in combined EV-related write-downs as the initial market frenzy for battery-electric vehicles faces a severe correction.<\/li>\n<li><strong>Q4 EV sales cratered<\/strong> across the industry, with <strong>Ford (<a href=\"\/stock\/F\">F<\/a>)<\/strong> reporting a <strong>52% plunge<\/strong> and <strong>General Motors (<a href=\"\/stock\/GM\">GM<\/a>)<\/strong> seeing a <strong>43% decline<\/strong> in pure electric deliveries.<\/li>\n<li>The expiration of the <strong>$7,500 federal EV tax credit<\/strong> on September 30, 2025, is cited as a primary driver for the collapse, as consumers balk at high sticker prices without government subsidies.<\/li>\n<li><strong>Stellantis (<a href=\"\/stock\/STLA\">STLA<\/a>)<\/strong> shares suffered their <strong>largest one-day drop on record (25.2%)<\/strong> after the company disclosed a staggering <strong>$26 billion<\/strong> charge and a retreat from several high-profile electric projects.<\/li>\n<li>Real-time news service <strong>Newsquawk<\/strong> is responding to the heightened market volatility by offering a <strong>14-day free trial<\/strong>, highlighting its adoption by the <em>world&#39;s largest financial institutions<\/em> for tracking sector-wide shifts.<\/li>\n<\/ul>\n<p>The U.S. automotive landscape has hit a massive financial roadblock as the &quot;Detroit Big Three&quot; face the reality of a cooling electric vehicle market. <strong>Stellantis (<a href=\"\/stock\/STLA\">STLA<\/a>)<\/strong> led the retreat with a colossal <strong>$26 billion<\/strong> write-down, primarily tied to canceled products like the <strong>Ram 1500 BEV<\/strong> and resized battery operations. This follows a <strong>$19.5 billion<\/strong> hit taken by <strong>Ford (<a href=\"\/stock\/F\">F<\/a>)<\/strong> and approximately <strong>$7.6 billion<\/strong> in charges from <strong>General Motors (<a href=\"\/stock\/GM\">GM<\/a>)<\/strong> as they scale back ambitious electrification goals.<\/p>\n<p>The financial fallout stems from a dramatic shift in consumer behavior during the fourth quarter. Following the expiration of federal tax incentives, <em>pure EV sales collapsed<\/em> while hybrid vehicle sales surged to record highs. <strong>Ford (<a href=\"\/stock\/F\">F<\/a>)<\/strong> reported that while its EV sales plummeted, its <strong>hybrid sales hit a record 228,072 vehicles<\/strong>, up over <strong>21%<\/strong>, signaling a pragmatic shift in buyer preference toward dual-powertrain options.<\/p>\n<p>Industry analysts are calling the current situation the <em>\u201cbiggest capital allocation mistake\u201d<\/em> in automotive history. The aggressive push toward 100% electric lineups has been stymied by <strong>range anxiety, high costs, and a lack of charging infrastructure<\/strong>. Under pressure from investors, the Big Three are now pivoting toward a &quot;freedom of choice&quot; strategy, refocusing investments on <strong>hybrids and advanced internal combustion engines<\/strong> to protect profit margins.<\/p>\n<p>Amidst this sector-wide turmoil, institutional traders are seeking faster access to market-moving headlines. <strong>Newsquawk<\/strong> is currently promoting a <strong>14-day free trial<\/strong> of its squawk service, positioning itself as a critical tool for navigating the rapid policy changes and earnings revisions currently rocking the <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> (<a href=\"\/stock\/SPY\">SPY<\/a>)<\/strong> and the broader automotive industry.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways General Motors (GM), Ford (F), and Stellantis (STLA) have recorded over $50 billion in combined EV-related write-downs as 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