Ford just abandoned its flagship electric vehicle to lose $19.5 billion
Ford is expecting to take a hit of $19.5 billion after scrapping the flagship electric pick-up truck, F-150, along with a range of other larger EVs, to focus on hybrid models.
The policy change comes after the Trump administration eliminated federal subsidies for electric car buyers, throwing the industry into uncertainty. Ford executives said they will now put money into manufacturing more conventional trucks and vans, lower-priced electric options, and a new power storage operation aimed at business clients like utility companies.
Andrew Frick from Ford said, “Rather than spending billions more on large EVs that now have no path to profitability, we are allocating that money into higher-returning areas.”
Ford has its own reasons for the decision. The company said the financial justification for building certain large electric models “has eroded due to lower-than-expected demand, high costs and regulatory changes.”
“When the market really changed over the last couple of months, that was really the impetus for us to make the call,” Jim Farley, CEO of Ford, told Reuters.
The government pulled the $7,500 tax break for new electric vehicle purchases at the end of September. That move created a rush of buyers in September, but sales dropped 49 percent the following month, according to numbers from Cox Automotive.
Other automakers pull back on electric vehicles
Ford is not alone in backing away from electric vehicle commitments. General Motors said in October it would take a $1.6 billion hit while cutting back production of battery-powered cars. GM also announced plans to reintroduce the Chevy Bolt with batteries from Chinese manufacturer CATL, despite heavy import taxes on Chinese goods.
The financial hit to Ford breaks down as follows: $12.5 billion will be recorded in the final three months of this year as the company reorganizes its electric vehicle operations. This includes $3 billion to close down a battery-making partnership with SK On, a South Korean firm. The remaining charges will be spread out through 2027.
Frick said the company is responding to current market realities rather than predictions made years ago. He noted that American buyers are sending a clear message about what they want. While customers appreciate electric vehicle advantages, “they demand affordability, range confidence” and vehicles that work for their daily needs and jobs, he said.
Despite the massive writedown, Ford actually improved its financial outlook for the year. The company now expects adjusted earnings before interest and tax of $7 billion, higher than the $6 billion to $6.5 billion it projected in October.
The Michigan-based manufacturer said that by 2030, roughly half its worldwide sales will come from hybrids, extended-range electric vehicles, and fully electric models. That compares to 25 percent in 2025.
Farley had promoted the electric F-150 truck, called the F-150 Lightning, as the “truck of the future” when he unveiled it in 2021. However, the vehicle struggled with rising production costs and poor consumer acceptance. Sales fell 72 percent when comparing November 2025 to the same month in 2024.
Ford’s electric vehicle unit, known as Ford e, lost $5.1 billion in 2024 and another $3.6 billion during the first nine months of 2025. The company said its new approach should make the electric division profitable by 2029.
With Trump moving to reduce fuel economy requirements for American vehicles, Ford faces less pressure to electrify its lineup to meet government consumption standards.
New focus on smaller and cheaper model
The next version of the F-150 Lightning will be an extended-range electric vehicle, which means it will have a small gasoline engine that charges the battery pack.
Frick said a “new low-cost universal electric vehicle platform” will form the basis for a “new family of smaller, more affordable and cost-efficient vehicles.” A new mid-size pickup truck is scheduled for 2027.
The pivot toward smaller electric vehicles follows an announcement last week that Ford will work with French carmaker Renault to build compact electric cars and vans. The partnership aims to cut costs and speed up development to compete with Chinese manufacturers in Europe.
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