Wall Street Breakfast Podcast: Ford Takes $19.5B EV Reset

Ford's EV Strategy Shift - Ford is taking a $19.5 billion write-down of its electric vehicle division due to weak demand, high costs, and regulatory changes [3] - The company will end production of the current generation F-150 Lightning and focus on hybrids, extended range vehicles, and smaller EV models [5] - By 2030, Ford aims for approximately 50% of its global volume to consist of hybrids, extended range EVs, and pure EVs, up from 17% currently [5] Financial Projections - Ford raised its 2025 EBIT estimate to $7 billion from a previous range of $6 billion to $6.5 billion and confirmed free cash flow guidance of $2 billion to $3 billion for 2025 [4] Production and Infrastructure Changes - The next generation of the F-150 Lightning will utilize an extended range electric vehicle architecture and will be assembled at the Rouge Electric Vehicle Center in Dearborn, Michigan [6] - Ford plans to convert its Kentucky and Michigan EV battery plants to produce energy cells for the electric grid and data center demand [6] Market Reaction - Following the announcement, Ford's shares increased by 2% in after-hours trading, while Tesla shares fell slightly, and General Motors and Stellantis remained unchanged [7]