Ford announced on Monday that it is discontinuing production of its fully-electric F-150 Lightning as part of a significant restructuring of its electric vehicle strategy. Instead, the automaker will introduce an “extended range electric vehicle” model of the truck, which features a gas generator capable of recharging the battery pack, allowing for a driving range of over 700 miles.
While Ford has yet to disclose the release date and pricing for the new F-150 Lightning, the shift in manufacturing direction will significantly impact the company’s finances, with Ford estimating a $19.5 billion charge to readjust its electric vehicle business strategy. This includes an $8.5 billion writedown of its electric vehicle assets that will be recorded in the fourth quarter and an additional $5.5 billion in cash charges anticipated through 2027.
The cancellation of the next-generation all-electric truck, internally referred to as “T3,” is part of this strategic pivot. Ford had initially planned for this new model to be a fully original design rather than adapting existing gas vehicle technology to electric. Furthermore, the automaker is also scrapping plans for a next-generation commercial van, opting instead to continue production of the current E-Transit model.
In a statement, Ford acknowledged the decision to halt the production of certain larger electric vehicles due to a decrease in demand, high production costs, and changing regulatory environments. However, the company confirmed it will still pursue a mid-sized all-electric pickup truck, expected to launch in 2027, using a platform developed by former Tesla executives Doug Field and Alan Clarke.
Ford president Andrew Frick elaborated on the company’s strategy, stating that rather than investing further in large electric vehicles that currently do not present a profitable future, Ford plans to invest those resources into more financially promising areas, including hybrids, extended range electric vehicles, affordable EVs, and new ventures like energy storage.
The F-150 Lightning was first revealed in 2021, just two years after Ford announced its all-electric Mustang, the Mach-E. Although initially teased with a target price of around $40,000, many buyers found that this base price was primarily aimed at fleet customers. As a result, Ford has seen sluggish sales, with approximately 7,000 Lightnings sold on average per quarter over the past two years, peaking at nearly 11,000 in the fourth quarter of 2024.
Ultimately, the electric vehicle market has encountered numerous challenges since the Lightning’s introduction, exacerbated by a price war initiated by Tesla, affecting the sales of legacy automakers and straining their profit margins. Additionally, the political landscape is shifting, as recent elections have led to a rollback of several policies designed to promote electric vehicle adoption, further complicating the industry’s growth prospects.
Ford’s decision represents a recalibration of its electric vehicle ambitions, aiming to align future plans with more sustainable market opportunities while still committing to innovation in the electric segment.