The US electric vehicle market is going through a tough period. On Monday, Ford Motor Company... The company announced it will scale back its electric vehicle program, a move that will reduce its revenue by $19.5 billion, with most of the losses booked in this quarter.
Ford announced this month that it has ceased production of the full-size electric pickup truck, the F-150 Lightning, and will focus on hybrid vehicles and a range of smaller, cheaper electric cars. Meanwhile, Ford, which previously supplied batteries for its trucks, has announced a halt to production. The factory is now switching to grid-supplied batteries .
Andrew Frick, president of Ford's commercial vehicle and electric vehicle division, pointed out that American consumers have clearly expressed their demand for the advantages of electrification, such as instantaneous torque and mobility, but also require reasonable prices. Rather than investing billions more dollars in large electric vehicles, which currently appear unprofitable, Ford hopes to invest that money in areas with higher returns.
The all-electric F-150 Lightning is of great significance to Ford. Launched with great fanfare in 2021 and priced at just $40,000, Ford hoped to establish its brand in the electric vehicle industry with this product. However, since entering production, the model has consistently been sold at a price significantly higher than $40,000, with the 2025 model starting at $55,000, potentially indicating some problems with Ford's electric pickup truck strategy.
Ford's heartache
Demand for electric vehicles in the U.S. surged during the summer and third quarter as the U.S. government's $7,500 tax credit for electric vehicle buyers expired in September. Ford Motor Company said in October that its third-quarter electric vehicle sales increased 30% year-over-year.
Among them, the F150 Lightning was the best-selling electric truck in the United States in the third quarter, surpassing Tesla. The Cybertruck and other manufacturers. This Ford electric pickup truck was also unanimously voted Motortrend magazine's best truck of 2023 and named Kelley Blue Book's best electric truck of 2024.
Despite its numerous accolades, the F150 Lightning could not escape discontinuation. This was partly due to the inherent limitations of electric pickup trucks in terms of range compared to traditional trucks, and partly due to the demand difficulties associated with electric vehicles.
In the third quarter, U.S. electric vehicle sales increased by 40.7% quarter-over-quarter and 29.6% year-over-year, exceeding the peak record set in the fourth quarter of 2024 by 20%. However, electric vehicles only accounted for 10.5% of total vehicle sales. This indicates that U.S. consumers' acceptance of electric vehicles is still in a relatively early stage.
On the other hand, the Trump administration has repealed emissions regulations restricting gasoline-powered vehicles and financial support for electric vehicles, further diminishing their appeal to consumers.
For Ford, the more challenging aspect is that almost every electric vehicle model is operating at a loss, even with prices higher than expected. This is partly due to consistently lower-than-expected sales of electric vehicles, and also because production costs have not decreased as much as Ford anticipated.
Ford says its all-electric plans involve developing more compact and affordable models, such as a mid-size pickup truck it unveiled in August, which is expected to launch next year with a target price of $30,000.
(Article source: CLS)
