(Bloomberg) -- tellantis NV Chief Executive Officer Carlos Tavares’s surprise departure leaves the maker of Jeep SUVs and Peugeot cars without clear leadership at a time of significant upheaval in the industry.

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The shares fell as much as 8.9% in Milan on Monday, and are down 46% this year, after the company said late Sunday that Chairman John Elkann will head an interim committee that’s taking over from Tavares until a new CEO is found.

Stellantis is under pressure to halt a sales slide in the US and tackle overcapacities in Europe, where demand for electric cars is waning just as Chinese manufacturers expand in the region.

Tavares’s departure, reported earlier by Bloomberg News, means the group is without leadership when “critical decisions” need to be made, said Jefferies analysts led by Philippe Houchois.

The CEO is leaving sooner than expected as his views on the carmaker’s future differed from those of the board and some shareholders, the company said. While Tavares had run Stellantis since it was formed in 2021 through a merger of PSA Group, parent of Peugeot and Citroën, and Fiat Chrysler, his drastic cost-cutting push in recent months sparked pushback from unions, dealers and managers inside the company.

Tavares is one of a number of industry executives who’ve come under pressure as carmakers confront a slumping market that’s struggling with an economic slowdown in China, flagging demand for EVs in Europe and the threat of tariffs as Donald Trump prepares to return to the White House. Nissan Motor Co. Chief Financial Officer Stephen Ma is also set to step down, people with knowledge of the matter said over the weekend.

Tavares in recent weeks was trying to regain control after setbacks that led the automaker to slash expectations for full-year profit and cash flow in late September. While European rivals such as Volkswagen AG are also struggling with weak demand, the magnitude of Stellantis’s warning — caused by sliding sales, a dated US vehicle lineup and bloated inventory — alarmed investors.

Tavares pledged fixes and moved to replace his finance chief and other executives, but market share continued to decline in key markets including France, fueling concerns over the carmaker’s long-term prospects. The company on Sunday confirmed its guidance and said it plans to name a new CEO in the first half of next year.

Swapping out the CEO and CFO in such a short time creates a “challenge” for investors, said JPMorgan analyst Jose Asumendi, adding that investors are unlikely to price in significant earnings improvement for the next year until the management team is reset.