Ford Motor Company has ceased production of its F-150 Lightning full-size electric pickup truck. The company will now concentrate on hybrid vehicles and a forthcoming range of smaller, more affordable electric vehicles (EVs). Battery manufacturing facilities previously allocated for Ford's EV trucks will be redirected to supply batteries for electric grid applications.
Ford cited customer demand and the F-150 Lightning's unprofitability as reasons for the decision. Andrew Frick, president of Ford Blue and Ford Model e, stated that consumers seek the benefits of electrification, such as instant torque and mobile power, but also require affordability. He indicated that funds previously allocated to large, unprofitable EVs would be redirected to areas with higher potential returns.
An upcoming plug-in hybrid version of the F-150 truck will feature a gasoline engine functioning as a generator, providing extended range.
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 was designed to appeal to mainstream truck owners, incorporating features such as multiple power outlets to utilize its onboard battery for tools, appliances, and home power during outages.
The F-150 Lightning received the 2023 Truck of the Year award from Motortrend and the North American Car, Utility and Truck of the Year Awards. It was also recognized as Kelley Blue Book's top pick for electric trucks in 2024 and was reported by Ford as the best-selling electric truck in America during the last quarter.
Despite its accolades, the electric pickup category has faced challenges. The F-150 Lightning encountered issues with reliability and exhibited limited range when towing. Ford reported financial losses on each unit sold.
Overall EV sales have been lower than initial industry expectations, and production costs have not decreased as anticipated by Ford.
Changes in the regulatory environment have also influenced Ford's strategy. Previous incentives, such as a $7,500 tax credit for some EVs, have been removed. Additionally, revised emissions and fuel economy standards permit automakers to produce more gasoline and diesel-powered trucks without violating federal regulations. Frick acknowledged these regulatory shifts as contributing factors to the decision.
Ford's revised all-electric strategy focuses on more compact and affordable vehicles. This includes a midsize pickup truck, announced in August, targeting a $30,000 price point and expected to launch within approximately one year.
The strategic shift will result in billions of dollars in write-offs and cash costs for Ford this year. The company anticipates these costs will be offset by the profitability of its new vehicle lines.
Due to excess battery production capacity from prior investments, Ford plans to reconfigure a battery production facility in Kentucky. This site will now manufacture batteries for stationary energy storage. These batteries can be used to balance electric grids by charging during periods of abundant, inexpensive electricity (e.g., from wind and solar) and discharging during times of scarcity. Ford also intends to market these batteries to data centers and other industrial clients.