Billion-dollar losses โ Formula project pulled from the wall
DS Automobiles is withdrawing from the Formula E racing series after this season due to significant financial losses reported by its parent company, Stellantis.
DS Automobiles, the French car manufacturer, is set to withdraw from the Formula E racing series at the end of this season. This decision comes amidst a financial downturn for its parent company, Stellantis, which reported staggering losses exceeding 20 billion euros for the year 2025. The announcement was made through Formula E's official channels, although the company itself has maintained a notable silence on the matter, raising questions about its future plans in motorsport following its withdrawal.
The driving force behind DS Automobiles' exit from Formula E appears to be the severe financial strain experienced by Stellantis, which warned investors earlier this year of the dire economic situation that included a projected write-down of several tens of billions due to overly optimistic sales forecasts of electric vehicles. This situation has significantly affected investor confidence, with Stellantis' stock prices plummeting following the announcement, prompting the company to declare that it will not be distributing dividends this year due to its financial situation.
DS Automobiles has been an integral participant in the Formula E series since its second season, contributing to the growth and popularity of electric racing. However, with the current financial pressures and uncertainties based on its parent company's performance, this withdrawal signifies not only a major change for the brand but also raises concerns about the broader implications for the Formula E series, as it continues to push for sustainable motorsport alternatives amid economic challenges.