Ford Motor Company has discontinued production of its F-150 Lightning electric pickup truck. The company announced a strategic shift to prioritize hybrid vehicles and a new line of smaller, more affordable electric vehicles (EVs). Battery manufacturing facilities previously designated for F-150 Lightning production will now supply batteries for stationary energy storage to support the electric grid.
Reasons for the Adjustment
Ford attributed this decision to customer demand for more affordable options and the F-150 Lightning's inability to achieve profitability. Andrew Frick, president of Ford Blue and Ford Model e, stated that the company is reallocating investments from large, unprofitable EVs to areas with higher returns.
Future F-150 Offerings
An upcoming plug-in hybrid version of the F-150 will integrate a gasoline engine as a generator, enabling extended range beyond the battery's capacity. This model will replace the all-electric Lightning.
Product History and Performance
The F-150 Lightning was introduced in 2021 with an initial advertised price of $40,000. However, the 2025 model's starting price was approximately $55,000. The truck featured integrated power outlets designed to support tools, tailgating activities, and home power during outages.
Despite receiving several industry accolades, including the 2023 Truck of the Year from Motortrend and the North American Car, Utility and Truck of the Year Awards, and being Kelley Blue Book's top pick for electric trucks in 2024, the F-150 Lightning faced market challenges. It was reported as the best-selling electric truck in America for the last quarter by Ford, but the overall electric pickup segment has experienced slower-than-anticipated sales and performance expectations. Specific challenges for the Lightning included reliability concerns and limited range when towing. Ford reported financial losses on each unit produced.
Market and Regulatory Environment
Lower-than-expected EV sales and higher-than-anticipated production costs contributed to the F-150 Lightning's unprofitability. Additionally, changes in the regulatory landscape, such as the elimination of a $7,500 federal tax credit for some EVs and adjustments to emissions and fuel economy standards, were cited as factors influencing Ford's decision. These regulatory revisions may reduce incentives for automakers to produce certain unprofitable EV models.
Strategic Repositioning
Ford's future EV strategy will concentrate on more compact and affordable vehicles. The company plans to introduce a midsize electric pickup truck with a target price of $30,000, expected to roll out in approximately one year. This strategic pivot is projected to incur billions of dollars in write-offs and cash expenditures for Ford this year.
Battery Repurposing
The shift in production plans has resulted in surplus battery manufacturing capacity for Ford. Consequently, the company announced that a battery production facility in Kentucky will be reconfigured to produce batteries for stationary storage applications. These batteries will be supplied to the electric grid for balancing demand, and to data centers and other industrial clients.