Ford’s upcoming F-150 Lightning model will feature a gasoline generator as the company shifts its focus from producing larger electric vehicles

Ford Restructures Electric Vehicle Strategy, Ends F-150 Lightning Production

Ford has announced it will discontinue the production of its fully electric F-150 Lightning pickup truck as part of a significant overhaul of its electric vehicle (EV) strategy. Instead, the company plans to introduce an "extended range electric vehicle" version of the truck, which will feature a gasoline-powered generator capable of recharging the battery and providing a driving range exceeding 700 miles.

Details regarding the launch date and pricing for this new F-150 Lightning variant have not yet been disclosed by Ford.

Financial Impact of the Shift

This strategic pivot comes at a considerable cost for Ford. The automaker expects to incur a $19.5 billion expense to realign its EV business, with the majority of these charges—including an $8.5 billion write-down of EV assets—being recognized in the fourth quarter. Additionally, Ford anticipates $5.5 billion in cash outflows related to these changes through 2027.

Factory and Product Line Changes

The restructuring will affect multiple manufacturing facilities and employees. As a result, Ford has canceled its next-generation all-electric truck project, internally referred to as “T3,” which was intended to be a ground-up EV design. The company also confirmed it will no longer pursue a new commercial electric van, though the current E-Transit model will remain in production.

“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 stated.

Future EV Plans

Despite these changes, Ford remains committed to launching a mid-size all-electric pickup truck in 2027. This vehicle will be built on a new platform developed by a team led by former Tesla executives Doug Field and Alan Clarke, and the platform will also support additional future models. Ford is also on schedule to begin manufacturing more affordable lithium iron phosphate (LFP) batteries in 2026 at its BlueOval Battery Park Michigan facility, utilizing technology licensed from China’s CATL. These batteries will be used in the upcoming mid-size truck.

“Instead of investing billions more into large EVs that no longer offer a clear path to profitability, we are redirecting those resources toward higher-return opportunities, including more trucks and hybrid vans, extended-range electric vehicles, affordable EVs, and innovative ventures like energy storage,” said Ford president Andrew Frick during a press call.

Background and Market Challenges

The F-150 Lightning was first unveiled in 2021, following the introduction of the all-electric Mustang Mach-E. Initially, Ford promoted a $40,000 starting price for the Lightning, positioning it as a flagship for its $22 billion investment in electric vehicles. However, the base price was largely reserved for fleet customers, and most buyers did not see this price point. Over the past two years, Ford has sold approximately 7,000 Lightnings per quarter, with a peak of nearly 11,000 units in the fourth quarter of 2024.

Since the debut of the F-150 Lightning, the EV market has faced significant challenges. Tesla initiated aggressive price cuts to address declining sales, squeezing the already thin or negative profit margins of traditional automakers. Additionally, political shifts, including the reelection of Donald Trump and Republican control of Congress, have resulted in the rollback of several policies designed to promote electric vehicle adoption.