Ford Motor Co. (F) is canceling its F-150 Lightning fully electric pick-up truck and taking a $19.5 billion U.S. charge as it moves away from its electric vehicle (EV) plans.
The Detroit automaker said that it is pivoting away from its EV strategy amid waning consumer demand and mounting financial losses.
Heading into 2026, Ford said that it will concentrate on making more efficient gasoline-fueled vehicles, as well as gas-electric hybrids.
Most of the $19.5 billion U.S. charge will occur during the fourth quarter of this year, followed by a $5.5 billion U.S. cash charge through 2027.
Management said that the financial charges will impact the company’s net results but not its adjusted earnings.
Ford will also introduce some manufacturing changes moving forward. These include renaming its Tennessee Electric Vehicle Center as the Tennessee Truck Plant.
The plant in Tennessee will now produce new affordable gas-powered trucks. Ford’s Ohio Assembly Plant will produce gas and hybrid vans.
Ford Motor Co. said that it has lost $13 billion U.S. on electric vehicles since 2023.
Any future electric vehicles made by Ford will be focused on gas-electric hybrids and extended range EVs, said the company’s management team.
F stock has risen 42% this year to trade at $13.65 U.S. per share.
