Ford's February EV Slump: Why the F-150 Lightning is Losing Charge

Core Insights - Ford's February sales data indicates a significant slowdown in its electric vehicle (EV) business, particularly with a 71% year-over-year decline in total EV sales, selling only 2,122 units [1][9] - The F-150 Lightning experienced a drastic drop in sales, plummeting over 76% to just 522 units, while the Mustang Mach-E and E-Transit van also saw substantial declines in demand [1][2] Group 1: Sales Performance - Total Ford sales decreased by 5.5% to 149,962 units in February, with internal combustion engine vehicles remaining the primary sales driver at 135,830 units, nearly unchanged from the previous year [2] - Hybrid vehicle sales totaled 12,010 units, reflecting a decline of about 22% [2] Group 2: F-150 Lightning and Production Adjustments - The F-150 Lightning's sales trajectory has been disappointing, attributed to high battery costs and interest rates, leading Ford to scale back production and adjust output to manage inventory levels [3][4] - Ford has ceased production of a fully electric version of the F-150, with future models expected to include hybrid elements [4] Group 3: Strategic Shift - Ford is refocusing its strategy towards more profitable hybrids and traditional vehicles while narrowing its pure EV efforts due to slower EV adoption and rising costs [5] - The company plans to concentrate on smaller, more affordable EV models built on its upcoming Universal EV Platform, aiming for higher volume at lower costs [6] Group 4: Industry Context - The broader automotive industry is experiencing similar challenges, with automakers like General Motors and Stellantis also realigning their strategies in response to weaker-than-expected EV demand [7][8] - The U.S. has fallen behind in EV adoption, exacerbated by reduced government support and the expiration of key tax credits [7] Group 5: Financial Overview - Ford's stock has declined by 6% over the past six months, trading at a forward price-to-sales ratio of 0.29, significantly below the industry average [13][14] - Earnings estimates for 2026 and 2027 indicate potential year-over-year growth for Ford [16]