Ford Motor Co. announced Monday that it is taking a $19.5 billion write-down tied to its electric vehicle operations and is scrapping its electric F-150 truck, marking a major retreat from an aggressive push into electric vehicles that has cost the company billions of dollars.
BREAKING: In a massive hit, Ford, $F, is writing down $19.5 billion in EV investments.
Ford also says it will stop producing the electric version of the F-150. pic.twitter.com/cWMPDeO9d0
— The Kobeissi Letter (@KobeissiLetter) December 15, 2025
The announcement comes after years of heavy investment in electric vehicle production, during a period when the Biden-Harris administration promoted electric vehicles while discouraging gas-powered alternatives.
Ford has previously disclosed that its electric vehicle division has generated multibillion-dollar losses, and the company acknowledged Monday that those losses have forced a significant strategic shift.
Ford said the $19.5 billion charge reflects a reassessment of its electric vehicle assets and future plans, as demand has not materialized at levels the company initially projected.
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The automaker indicated it will now redirect resources away from unprofitable electric vehicle programs and toward areas with stronger returns.
“This is a customer-driven shift to create a stronger, more resilient and more profitable Ford,” Ford President and CEO Jim Farley said in a statement.
“The operating reality has changed, and we are redeploying capital into higher-return growth opportunities: Ford Pro, our market-leading trucks and vans, hybrids and high-margin opportunities like our new battery energy storage business,” Farley said.
Ford has acknowledged in prior earnings reports that its electric vehicle division has struggled, describing ongoing losses that weighed heavily on overall company performance.
Monday’s announcement formalizes what executives signaled earlier this year: that Ford’s initial electric vehicle strategy has proven unsustainable under current market conditions.
According to Fortune, the Dearborn, Michigan-based automaker will implement a series of changes across its vehicle lineup and production facilities to better align with customer demand.
The company said it will focus on producing more affordable vehicles and reducing exposure to large, high-cost electric models that have failed to generate expected returns.
The changes include scrapping production of certain larger electric vehicles, including the F-150 Lightning.
Ford plans to retool the vehicle as an electric platform equipped with a gas-powered generator, shifting away from a fully electric configuration.
The company also said it will intensify development of smaller, lower-cost vehicles, including a midsize pickup truck targeted for release in 2027.
Ford’s announcement represents a notable reversal from its posture just a few years ago, when the company publicly aligned itself with the Biden-Harris administration’s electric vehicle agenda.
In 2021, then-President Joe Biden traveled to Dearborn, Michigan, to visit Ford’s Rouge Electric Vehicle Center, where he participated in a highly publicized demonstration of the electric F-150 Lightning.
During the visit, Biden took the electric truck for a test drive and commented on its performance.
“This sucker’s quick!” Biden said.
The visit drew additional attention after Biden addressed reporters while seated in the vehicle.
When one reporter attempted to ask a question about Israel, Biden responded before driving off.
“Mr. President, can I ask you a quick question on Israel before you drive away since it’s so important?” the reporter asked.
“No you can’t. Not unless you get in front of the car as I step on it. I’m only teasing,” Biden said, before speeding off.
REPORTER: Mr. President, can I ask you a quick question on Israel before you drive away since it’s so important?
BIDEN: No you can’t. Not unless you get in front of the car as I step on it. I’m only teasing.pic.twitter.com/A3jrsIi5mR
— JM Rieger (@RiegerReport) May 18, 2021
Ford’s electric vehicle strategy was widely promoted during that period as part of a broader transition away from internal combustion engines.
However, the company’s financial disclosures over the past several years have shown that electric vehicle production has become a significant drag on earnings.
Monday’s write-down reflects Ford’s conclusion that its electric vehicle investments will not deliver the returns once anticipated.
The company said the shift is intended to stabilize operations and position Ford for profitability by focusing on trucks, vans, hybrids, and other business segments with established demand.
Ford did not provide a specific timeline for completing the restructuring but indicated that the changes would begin immediately.
The automaker said it remains committed to offering electric and hybrid options, but emphasized that future investments will be guided by customer demand and financial performance rather than policy pressure.
The move places Ford among a growing number of automakers scaling back electric vehicle ambitions amid slowing sales, rising costs, and consumer reluctance to fully embrace electric-only transportation.
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