Core Thesis - Ford Motor Company is facing significant challenges in its electric vehicle (EV) business, leading to a strategic shift towards higher-margin vehicles and a focus on profitability rather than scale [3][4][5]. Financial Performance - As of January 29th, Ford's share price was $14.00, with trailing and forward P/E ratios of 11.81 and 9.74 respectively [1]. - The company expects to incur approximately $19.5 billion in charges related to its EV business, marking one of the largest impairments in U.S. auto history [3][4]. Strategic Shift - Ford has lost $13 billion on its EV efforts since 2023, prompting a pivot towards gas-powered models, hybrids, and extended-range EVs [4][5]. - The company plans to discontinue the pure EV version of its F-150 Lightning pickup and focus on producing an extended-range variant [5]. - By 2030, Ford aims for about 50% of its global volume to consist of hybrids, extended-range vehicles, and EVs, up from the current 17% [6]. Operational Changes - Ford is transforming its Kentucky EV-battery factory into a battery-storage business, targeting utilities, renewable-energy developers, and large-scale AI data centers [6]. - This strategic repositioning is intended to cut losses and capitalize on emerging growth areas, presenting long-term value creation opportunities [6].