Driving the news: Ford $F ( ▲ 0.15% ) is ending production of the all-electric F-150 Lightning and will take a $19.5 billion write-down to reshape its EV strategy, the company announced.
For context: The Lightning was originally touted as Ford’s next potential “Model T” moment, but sales have been steadily dropping for a while due to a mix of increased competition, reduced EV incentives, and economic headwinds.
Instead, the company will reintroduce the Lightning as an extended-range electric vehicle (EREV) that uses a gas generator to recharge an electric battery for over 700 miles of range.
Workers from Lightning production are being shifted to gas-powered and hybrid F-150 lines.
Yet, Ford still plans a mid-sized all-electric pickup for 2027.
What they're saying: "Rather than spending billions more on large EVs that now have no path to profitability, we are allocating that money into higher-returning areas," said Andrew Frick, president of Ford Blue and Ford Model e.
Bottom line: Ford is betting that hybrid and EREV demand will materialize in stronger numbers, but the market will decide if that's the right call.
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