The move to electric vehicles has been a long and difficult one for most carmakers out there. For legacy automaker Ford (F), that is no different. The price tag recently emerged on just how much the losses will be from its attempts at electric vehicle development, and it is a doozy of a price tag by most any measure. The news—plus word about Ford’s new pivot—combined to leave investors only mildly concerned, as shares slipped fractionally in Tuesday afternoon’s trading.
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The cost of the electric vehicle concept at Ford hit hard. Ford looks to record $19.5 billion in “special items related to a restructuring of its business priorities.” Most of these charges will hit in the fourth quarter, reports note, and will actually not be the end of it. Ford plans to record another $5.5 billion in cash through 2027, reports noted, though most of the cash will be paid in 2026.
The good news here is that this record will not impact adjusted earnings. It will, however, hit net results, which comes at a terrible time. Just yesterday, Ford noted it was increasing its adjusted earnings guidance to around $7 billion for 2025. This is on par with a target projection from earlier this year, but does not factor in the huge price tag for the priority shift.
Electric Lightning Out, EREV Pickup In
As for what will be coming in in the place of Ford’s electric vehicle lineup, there will be something of an emphasis placed on hybrid vehicles alongside the much more lucrative gas vehicle space. The F-150 Lightning is out, reports note, and instead, we will get an new F-150 Lightning that denotes an extended-range electric vehicle (EREV), that boasts a gas-powered generator along with battery power.
But the difference here is that the new F-150 Lightning will not be a hybrid, but a full electric that offers the ability to recharge via gasoline with that onboard generator. The range is shorter—only about 700 miles or so—but with the gas generator involved, it can recharge on the fly.
Is Ford Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on F stock based on two Buys, 10 Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 36.91% rally in its share price over the past year, the average F price target of $13.12 per share implies 3.78% downside risk.
