Ford Ceases F-150 Lightning Production, Shifts EV Strategy
Ford Motor Company has discontinued production of its F-150 Lightning electric pickup truck. The company is reorienting its strategy towards hybrid vehicles and the development of smaller, more affordable electric vehicles (EVs). Battery manufacturing facilities previously designated for Ford trucks will now redirect their output to support the electric grid.
Strategic Shift Explained
Ford stated that this decision aligns with current customer demand and addresses the F-150 Lightning's unprofitability. Andrew Frick, president of Ford Blue and Ford Model e, cited consumer interest in electrification benefits such as instant torque and mobile power, alongside a demand for affordability. He indicated that Ford is reallocating investments from large EVs, which currently lack a clear path to profitability, into areas with higher returns.
An upcoming plug-in hybrid version of the F-150 truck will feature a gasoline engine acting as a generator, enabling continued operation if the battery is depleted. This model will replace the all-electric Lightning in Ford's lineup.
F-150 Lightning Background and Performance
The F-150 Lightning was introduced in 2021 with an initial announced price of $40,000. However, the 2025 model's starting price was approximately $55,000. The vehicle was designed to appeal to traditional truck buyers, avoiding unconventional EV aesthetics, and included onboard power outlets for various applications, such as powering tools, tailgating equipment, or homes during outages.
The F-150 Lightning received several accolades, including the 2023 Truck of the Year 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 these achievements, the electric pickup truck segment as a whole has faced challenges related to performance, affordability, and sales volumes. The Lightning experienced reliability issues and its towing range was noted as a limitation. Ford incurred financial losses on each unit sold, attributed to lower-than-anticipated EV sales and production costs that did not decrease as expected.
Regulatory and Future Implications
Changes in the regulatory environment have also influenced Ford's strategy. Revisions to EV policy, including the removal of a $7,500 tax credit for some EVs and modifications to emissions and fuel economy standards, have reduced incentives for producing unprofitable electric vehicles. These adjustments allow automakers to manufacture more large gasoline and diesel-powered trucks without facing previous federal regulations concerning fleet average cleanliness.
Ford's future EV plans will concentrate on smaller, more affordable vehicles. A midsize electric pickup truck, targeting a $30,000 price point, is anticipated for release in about one year. This strategic pivot is expected to incur billions of dollars in write-offs and cash costs for Ford this year.
The company's substantial investment in battery production capacity, initially for EV lines, now exceeds its current needs. Consequently, Ford announced plans to reconfigure a Kentucky battery production facility to manufacture batteries for stationary energy storage. These batteries will be utilized to balance the electric grid—charging during periods of surplus power and discharging when demand is high—and will also be supplied to data centers and other industrial clients.