Ford Motor Company has officially announced the discontinuation of its all-electric F-150 Lightning pickup truck, attributing this decision to the vehicle’s lack of profitability. This strategic move will result in a substantial write-down of $19.5 billion (£14.5 billion), marking a significant shift in the company’s approach to electric vehicles (EVs). The announcement, made on October 23, 2023, raises concerns for consumers who viewed the F-150 Lightning as emblematic of the future of electric motoring.
The decision comes as Ford grapples with disappointing sales figures and escalating production costs. The F-150 Lightning, which won the MotorTrend Truck of the Year award in 2023 and was recognized as the best electric pickup by Kelley Blue Book for 2024, will be phased out after the 2025 model year. Ford is instead pivoting towards developing a new type of extended-range electric vehicle that will utilize a petrol generator, promising a range of over 700 miles on a single tank.
Andrew Frick, president of Ford Blue and Ford Model E, emphasized consumer preferences, stating, “The American consumer is speaking clearly, and they want the benefits of electrification like instant torque and mobile power. But they also demand affordability.” He noted that Ford would redirect funds away from large EVs, which lack a clear path to profitability, towards more lucrative ventures.
The financial implications of this decision are stark. Ford’s Model E division has incurred losses exceeding $13 billion (£9.7 billion) in under three years. In the first three quarters of 2025, losses alone reached approximately $3.6 billion (£2.6 billion). EV sales have also dwindled, with November figures dropping by 61% year-on-year to just 4,247 vehicles.
The F-150 Lightning, which debuted in 2021 with a starting price of around $40,000 (£29,920), failed to meet market expectations. The new 2025 model now starts at approximately $55,000 (£41,140), which has alienated many potential buyers. Reports indicate that Ford was losing money on each Lightning sold, even at the increased price point.
Ford’s official statement highlighted the factors leading to this decision: “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 discontinuation of the $7,500 (£5,610) federal tax credit under the previous administration significantly impacted EV demand, according to Fortune. CEO Jim Farley warned in September that the absence of this incentive could reduce EV sales from 10-12% of total vehicle sales to around 5%.
The changing regulatory landscape has also influenced Ford’s strategy. Frick confirmed that “changes in the regulatory environment” were a factor in the decision to end Lightning production. As regulations loosen, the pressure on automakers to sustain unprofitable EV models diminishes.
Despite this retreat from large electric vehicles, Ford remains committed to the EV market. The company plans to launch a compact electric pickup in 2027, targeting a price of about $30,000 (£22,440). By 2030, Ford aims for half of its global sales to include hybrid, plug-in, or fully electric models, up from the current 17%.
Additionally, the Tennessee Electric Vehicle Centre will be transitioned into the Tennessee Truck Plant, set to produce petrol and hybrid models starting in 2029. A battery facility in Kentucky, initially planned for vehicle production, will now focus on manufacturing batteries for grid storage.
Ford projects that its Model E division will achieve profitability by 2029, three years later than the initial forecast of 2026 made in early 2023. The $19.5 billion charge, which includes an $8.5 billion (£6.3 billion) asset writedown, represents a critical juncture for an industry that has heavily invested in electric vehicles, amid consumer hesitance to fully embrace them.
