Ford (F) announced a massive $19.5 billion write-down tied to a major reset of its EV strategy. The move comes amid slower demand for battery-powered vehicles and regulatory changes under the Trump administration. Despite this, the company raised its full-year outlook, now expecting adjusted EBIT of about $7 billion, up from its previous forecast of $6 billion to $6.5 billion. F stock rose more than 1% in after-hours trading, as the higher guidance and new EV strategy eased investor concerns.
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Ford’s $19.5B EV Overhaul
As part of its new EV strategy, Ford plans to replace the fully electric F-150 Lightning with a new extended-range electric version that uses a gasoline engine to recharge the battery. The company is also canceling a next-generation electric truck, known internally as the T3, along with planned electric commercial vans.
Meanwhile, it is shifting its EV focus to a new platform for smaller, more affordable vehicles, with the first midsize pickup set to enter production in Louisville in 2027.
With these changes, Ford expects to book about $19.5 billion in special charges, with $12.5 billion expected to hit in the fourth quarter of 2025. The company estimates roughly $5.5 billion in cash costs, largely paid in 2026, with the rest spread into 2027.
The Returns
Overall, Ford aims to make its EV business profitable by 2029 as it shifts toward more profitable hybrid and traditional gas-powered models. The company believes these areas will deliver better returns, including expanding U.S. factories to build more trucks and vans, and launching a new battery energy storage business.
Looking ahead, Ford expects hybrids, extended-range EVs, and fully electric models to account for about half of its global sales by 2030, up from 25% in 2025.
What Led to This Turnaround for Ford?
Ford’s move highlights how the auto industry is pulling back from EVs as demand slows, after pouring billions of dollars into EVs earlier this decade. The outlook for EVs weakened this year after U.S. President Donald Trump rolled back federal support, including incentives for electric cars, and relaxed emissions rules, making gas-powered vehicles more attractive again.
To be precise, the Trump administration ended the $7,500 tax credit for new EV purchases in September. That sparked a short-term rush to buy EVs before the deadline, followed by a sharp drop in demand. Overall, U.S. electric vehicle sales dropped about 40% in November after the credit expired.
In October, General Motors (GM) also announced a $1.6 billion charge to cut back its EV production.
Is Ford a Good Stock to Buy Right Now?
Turning to Wall Street, F stock has a Hold consensus recommendation on TipRanks, based on two Buys, 10 Holds, and one Sell assigned in the last three months. The average price target for Ford is $12.73, suggesting a downside of 6.74% from its current price.
