Ford's next F-150 Lightning will have a gas generator as it pivots away from large EVs

Core Viewpoint - Ford is discontinuing the production of the fully-electric F-150 Lightning and shifting to an "extended range electric vehicle" version, which includes a gas generator for recharging the battery, allowing for over 700 miles of range [1][4]. Group 1: Production Changes - The new F-150 Lightning's release date and pricing have not been disclosed [2]. - Ford will incur a charge of $19.5 billion in special items, primarily in the fourth quarter, due to the impact of this strategic shift on various vehicle and battery factories [2]. - The next-generation all-electric truck, referred to as "T3," has been canceled, along with plans for a next-generation commercial van, while the current E-Transit model will continue [3]. Group 2: Market Strategy - Ford is abandoning plans for larger electric vehicles due to diminished business cases stemming from lower-than-expected demand, high costs, and regulatory changes [4]. - The company plans to introduce a mid-sized all-electric pickup truck in 2027, utilizing a platform developed by former Tesla executives [4]. - Ford's president stated that funds previously allocated for large EVs will be redirected towards more profitable areas, including hybrid trucks and vans, extended range electric vehicles, affordable EVs, and energy storage opportunities [5]. Group 3: Market Performance - The F-150 Lightning struggled in the U.S. market, with a price tag of $40,000 that was not realized for most buyers, as it was primarily aimed at fleet customers [8]. - Over the past two years, Ford sold approximately 7,000 Lightnings per quarter, peaking at nearly 11,000 in the fourth quarter of 2024 [8]. - The electric vehicle market has faced challenges, including a price war initiated by Tesla and changes in political policies affecting EV sales [9][10].