The abrupt resignation of Stellantis CEO Carlos Tavares sent shares in the world's No. 4 carmaker to more than two-year lows on Monday as investors questioned its turn-around plans. Tavares' exit leaves a void at the top of the company as management scrambles to address overcapacity and bloated inventory in the U.

Carlos Tavares is stepping down as Chief Executive Officer of Stellantis, effective immediately, following a sharp decline in the carmaker’s sales. As the Wall Street Journal notes, in July, the company reported that its net profit for the first half of the year had dropped by 48 percent compared to 2023.

The CEO’s exit comes after the automaker reported a slump in sales and slashed its profit outlook earlier for this year.