Ford’s ambitious electric F-150 Lightning, once backed by over 200,000 reservations and billions in investment, has been discontinued amid plunging demand and policy shifts, marking a sharp pivot in the U.S. auto industry’s electrification push.
The Losses Accelerate
Ford’s Model E division, dedicated to electric vehicles, recorded $5.1 billion in losses for 2024. By the third quarter of 2025, cumulative losses over three years surpassed $13 billion. In the first nine months of 2025 alone, Model E lost $3.6 billion, even as EV revenue nearly doubled. Sales volumes rose, but per-unit losses deepened, prompting analysts to label the trajectory unsustainable.
Policy Shifts Upend the Market
Federal tax credits of $7,500 per vehicle had propped up EV demand for a decade, alongside Biden-era emissions rules and fuel-economy penalties. On September 30, 2025, the federal EV tax credit expired, while the Trump administration suspended penalties and eased standards. Automakers, reliant on these incentives, watched their business models crumble as high-priced EVs lost appeal.
Demand Plummets
U.S. EV sales fell 40 percent in November 2025 from October levels. Ford’s EV sales dropped 61 percent in the same month. CEO Jim Farley had forecasted that ending the tax credit would halve EV market share from 10-12 percent to 5 percent; the data confirmed his prediction. Trucks priced at $50,000 to $80,000 sat unsold on lots.
The $19.5 Billion Charge
On December 15, 2025, Ford disclosed $19.5 billion in special charges—the largest EV-related writedown in industry history. This included $8.5 billion in asset impairments for Model E, $6 billion to exit battery partnerships, and $5 billion for canceled programs. Production of the all-electric F-150 Lightning halted immediately at the Rouge Electric Vehicle Center in Dearborn. Ford shifted to a hybrid pickup replacement.
Industry-Wide Realignment
Existing F-150 Lightning owners face no Generation 2 updates, though Ford proposed an extended-range electric vehicle option with unclear timelines. Owners expressed frustration online over perceived abandonment. Ford ended its battery joint venture with SK On, delayed a Kentucky plant, and scrapped plans to hire 6,200 union workers for 2 million annual EVs by 2026. Suppliers like LG Chem and Panasonic cut forecasts; thousands of workers faced layoffs or reassignments.
General Motors trimmed EV targets, Volkswagen redirected funds to hybrids, and Stellantis slowed its rollout. Investments exceeding $100 billion in EV infrastructure now confront weak demand for premium electrics. Wall Street rewards hybrid pivots. Ford dealers, stuck with inventory and charging investments, reported strained planning and eroding trust.
Path to Profitability
Despite the charge, Ford raised its 2025 operating profit guidance to $7 billion, viewing the reset as preferable to ongoing $3.6 billion annual EV losses. The company projects Model E profitability by 2029 through hybrids and extended-range vehicles, where it holds an 80 percent truck market share. Hybrid sales rose 20 percent in Q3 2025 amid EV declines. A $30,000 midsize electric truck is slated for 2027, alongside an EREV Lightning successor offering over 700 miles of range.
Skepticism and Credibility Challenges
Skeptics question the timeline, citing $13 billion in prior losses and damaged forecast credibility. Ford’s earlier “Universal EV Platform” and 2027 affordable EV promises gave way to data-driven reversal.
This pivot underscores the U.S. EV push’s vulnerability to policy and consumer preferences, raising questions about whether incentives masked true demand or if hybrids offer a more viable path forward for mass-market electrification.
Sources:
Reuters, Ford retreats from EVs, takes $19.5 billion charge as Trump policies take hold, December 15, 2025
Fortune, Ford writes down $19.5 billion as it pivots electric Lighting, December 15, 2025
CNBC, Ford to record $19.5 billion in special charges, pull back on electric vehicles, December 15, 2025
DW.com, Gas-loving Trump cedes electric car market to China, December 16, 2025
Electrek, Ford CEO says its $70K EV pickup wasn’t selling, but this will, December 16, 2025
Yahoo Finance, Ford’s $5 billion problem is getting worse, December 3, 2025