Ford Motor Co. (NYSE: F) killed its flagship all-electric F-150 Lightning on Monday and will absorb a $19.5 billion charge as the automaker abandons its bet on large electric vehicles in favor of gas-powered hybrids.
The Detroit automaker plans to replace the Lightning with an Extended Range Electric Vehicle that combines electric motors with a gasoline generator, the company announced.
The charge includes an $8.5 billion writedown of electric vehicle assets in the fourth quarter, according to the company’s statement.
The original Lightning debuted in 2021 with an advertised starting price of $40,000, but Ford never delivered vehicles at that price point to retail customers. The base trim targeted fleet buyers specifically, while consumer models started around $55,000 for the 2025 model year.
Ford lost money on each Lightning sold, even at the higher prices. The company has sold approximately 100,000 units since 2022, with sales peaking at 33,510 vehicles in 2024 before declining this year.
“Ford no longer plans to produce select larger electric vehicles where the business case has eroded due to lower-than-expected demand, high costs, and regulatory changes,” the company said.
Andrew Frick, president of Ford Blue and Ford Model e divisions, attributed the decision to current market conditions rather than earlier projections. The elimination of the $7,500 federal EV tax credit and relaxed emissions standards contributed to Ford’s reassessment, according to the announcement.
Unlike traditional hybrids, the EREV uses its gas generator solely to recharge the battery pack while electric motors power the wheels, maintaining instant torque and quiet operation.
“It delivers everything Lightning customers love — near instantaneous torque and pure electric driving,” said Doug Field, Ford’s chief EV, digital, and design officer. “But with a high-power generator enabling an estimated range of 700+ miles, it tows like a locomotive.”
Ford will assemble the EREV at its Rouge Electric Vehicle Center in Dearborn, Michigan, though the company has not announced a production timeline or pricing.
The automaker continues development of a smaller, more affordable electric pickup truck scheduled for 2027 production at its Louisville Assembly Plant. Ford projects that the starting price will be around $30,000.
Workers from the Rouge EV Center will transfer to the Dearborn Truck Plant to support expanded F-150 gas and hybrid production. The company plans to convert its Tennessee Electric Vehicle Center, originally designated for EV battery production, into a facility for affordable gas-powered trucks.
Ford expects hybrids, extended-range EVs, and electric vehicles to comprise 50% of its global volume by 2030, up from 17% in 2025.
The pivot mirrors similar moves by competitors. Stellantis delayed and ultimately canceled plans for the all-electric Ram REV, focusing instead on the Ramcharger EREV. Volkswagen’s Scout brand also plans extended-range electric trucks and SUVs.
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