Ford to take a huge loss on its electric vehicle overhaul

Core Insights - Ford is facing significant financial challenges, having lost $19 billion in its electric vehicle (EV) initiatives, prompting a need for strategic pivots to mitigate losses [1][2][8] - The company is planning to build a new type of full-sized truck in Tennessee, marking a departure from its traditional F-Series pickup trucks, which have been in production since 1947 [3][4] - Ford's EV sales have been underperforming compared to competitors, with a reported loss margin of -132% on EVs, while General Motors has achieved a margin of over 5% on traditional vehicles [12][13] Financial Performance - Ford's total return over the last decade, including dividends, has been 5.04% per year, with the stock up 38% year-to-date [7] - The company has experienced a dramatic slowdown in sales, exacerbated by the removal of a $7,500 credit that previously supported EV sales [8] Market Position - Ford's EV sales for the first three quarters were approximately 63,000 units, significantly lower than General Motors' 142,000 units, indicating a need for a broader product offering [12] - The company is expected to shift focus towards building more traditional vehicles, such as a steel truck with a V8 engine, rather than continuing with futuristic EV designs [6]