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Ford Motor Co. announced Monday that it is sharply pulling back on its electric vehicle ambitions, a move that will result in a $19.5 billion charge to earnings as the automaker reassesses its EV strategy amid slowing demand and shifting U.S. policy.
The charge, which will be recorded largely in the current quarter and extend into future periods, reflects canceled vehicle programs, restructuring costs, and changes to battery partnerships. Despite the massive writedown, Ford said its core business remains strong, boosted by solid sales of gasoline-powered trucks and SUVs. The company raised its full-year operating profit outlook to about $7 billion.
A major casualty of the shift is the electric F-150 Lightning. Ford confirmed it has halted production of the electric pickup indefinitely, with no timeline given for when manufacturing might resume. The company said future versions of the F-Series will instead focus on extended-range and hybrid configurations, promising longer driving ranges and improved towing capacity.
Ford's retreat comes after a surge in EV sales earlier this year, driven largely by buyers rushing to qualify for a $7,500 federal tax credit before it expired in late September. While Ford's EV sales rose 30% in the third quarter, electric vehicles still represented less than 6% of its total U.S. sales, underscoring the segment's limited scale.
The automaker, like many of its peers, had invested aggressively in electric vehicles in anticipation of tougher emissions regulations under the Biden administration. That outlook changed dramatically following policy reversals under President Donald Trump, including the rollback of emissions standards and the removal of federal incentives supporting EV adoption.
As part of its revised approach, Ford said it will redirect some EV-related assets toward other uses, including energy storage solutions for infrastructure projects and data centers. Battery facilities in Kentucky and Michigan will be repurposed to support those efforts.
Ford plans to focus its future EV lineup on smaller, more affordable models, with its first low-cost electric truck expected to debut in 2027 at a price near $30,000. Executives said the company's goal is to reach profitability in its EV business by 2029.
