Ford $F ( ▼ 5.39% ) said it will take $19.5 billion in charges largely tied to its electric vehicle business, marking one of the biggest EV-related write-downs yet as legacy automakers rethink their electrification plans.
The EV division has been a long-running drag on Ford’s financials, and the latest move underscores how aggressively the company is resetting expectations after years of losses in the segment.
From EVs to Energy Infrastructure
Alongside the write-down, Ford announced it will launch a battery energy storage business, using its battery plants in Kentucky and Michigan to supply energy infrastructure and meet growing data center demand. The shift reflects a broader effort to repurpose EV investments toward areas with clearer near-term returns.
Ford said these changes are part of a plan to push its electrified division to profitability by 2029.
A Strategic Pivot in the Lineup
As part of the overhaul, Ford will stop producing its electric F-150 Lightning and instead pivot to an extended-range electric vehicle that includes a gas-powered generator. The move signals a retreat from fully electric trucks in favor of hybrids that may better align with current consumer demand.
At the same time, the automaker raised its adjusted earnings before interest and taxes outlook to about $7 billion, up from a prior range of $6 billion to $6.5 billion.
Another Sign the EV Boom Is Cooling
Ford’s write-down ranks among the largest taken as traditional automakers pull back from aggressive EV expansion. As incumbents slow spending and cancel projects, EV-only manufacturers are seeing an opportunity to gain market share, even as the overall EV market shows signs of cooling.
In short, Ford’s move highlights a growing divide in the auto industry: legacy players are retrenching, while pure-play EV companies look to pick up the pieces.