Ford Motor Company has ceased production of the all-electric F-150 Lightning pickup truck. The company announced a strategic shift to prioritize hybrid vehicles and a future line of smaller, more affordable electric vehicles (EVs). Battery production facilities initially designated for Ford electric trucks will now redirect their output to support the electric grid.
Ford cited customer demand and the unprofitability of the all-electric Lightning as primary factors for this 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. The company is reallocating investments from large, unprofitable EVs to areas with higher potential returns.
The F-150 Lightning's design originated from a gasoline-powered truck platform. An upcoming version will incorporate a plug-in hybrid system, featuring a gasoline engine as a generator to extend range. This new model will replace the exclusively battery-electric Lightning.
F-150 Lightning Overview
- The all-electric F-150 Lightning was introduced in 2021 with an initial price target of $40,000.
- Upon production, the 2025 model's starting price was approximately $55,000.
- The truck was designed for mainstream appeal, offering features like onboard power outlets for tools, tailgating, and home backup during outages.
- It received awards including "2023 Truck of the Year" from Motortrend and the North American Car, Utility and Truck of the Year Awards, and was Kelley Blue Book's top pick for electric trucks in 2024.
- Ford reported it as the best-selling electric truck in America during the previous quarter, despite overall struggles in the electric pickup segment.
Challenges for the F-150 Lightning included lower-than-anticipated sales for electric pickups, reliability concerns, and limited towing range. Ford indicated that the vehicle incurred financial losses per unit, even at its higher market price. Industry-wide EV sales have not met initial automaker projections, and production costs did not decrease as expected.
Regulatory adjustments have also influenced Ford's strategy. Changes in policies, such as the removal of a $7,500 federal tax credit for some EVs and modifications to emissions and fuel economy standards, have reduced incentives for automakers to produce unprofitable electric vehicles. These revised regulations permit manufacturers to produce more gasoline and diesel-powered trucks without facing previous federal penalties.
Ford's future EV strategy will focus on more compact and cost-effective vehicles. A midsize electric pickup truck, targeting a $30,000 price point, is planned for release in approximately one year. This strategic pivot is expected to result in billions of dollars in write-offs and cash expenditures for Ford this year. The company anticipates these costs will be offset by replacing financially unviable vehicles with potentially profitable ones.
Repurposing Battery Production
Furthermore, Ford now possesses excess battery production capacity due to its prior investments in factories for its EV lines. As a result, Ford announced a new business venture: a battery production facility in Kentucky will be reconfigured to manufacture batteries for stationary energy storage. These batteries will be utilized to balance electric grids by charging during periods of abundant, inexpensive electricity (e.g., from wind and solar) and discharging during periods of scarcity. The batteries will also be marketed to data centers and other industrial clients.