- Ford will take a $19.5B charge tied to its EV shift in 2026.
- F-150 Lightning sales dropped as prices climbed past $50,000.
- CEO says high-end EVs aren’t selling at expected volume levels.
Rewind a few years and Ford, like most of its rivals, charged full speed into the electric future. The goal was clear: catch up to Tesla and help turn the U.S. into a thriving hub for EV innovation. Fast forward to today, and the future looks very different.
Read: Jim Farley Warns Europe It’s Selling Its Future To Chinese Carmakers
Much of Ford’s early EV effort hinged on the F-150 Lightning. Promoted by some as a cornerstone of the brand’s future, and initially the most affordable electric pickup in the States, the Lightning carried a lot of weight on its metaphorical bed.
But just three years after it launched, Ford has pulled the plug. CEO Jim Farley recently confirmed that part of the reason comes down to simple economics: buyers aren’t lining up for EVs priced north of $50,000.
Are Expensive EVs the Problem?
During an interview with CNBC, Farley addressed Ford’s announcement that it will take a $19.5 billion charge in 2026, tied to its decision to pivot away from EVs and refocus on internal combustion models. According to him, the company’s electric lineup simply wasn’t aligned with what buyers actually want.
“More importantly, the very high-end EVs, the $50,000, $60,000, $70,000, and $80,000 vehicles, they just weren’t selling,” Farley said.
Back in 2021, when the F-150 Lightning was first revealed, the base price came in at a relatively digestible $39,974. But that didn’t last for long, as the Blue Oval made a series of price hikes. By 2025, the base model had swollen to $54,780, an increase of nearly 37 percent, pushing it out of reach for many of the truck buyers it was originally meant to appeal to.
Hybrids In Focus
While Ford is now shifting its focus away from EVs, that doesn’t mean it’s done with electric motors and battery packs. During the same interview, Farley said that the company is committed to “following customers to where the market is, not where people thought it was going to be, but to where it is today.”
As such, Ford will start to prioritize hybrid and extended-range EV models. There will be a “whole lineup” of new hybrid models, including a hybrid Bronco. Farley also pointed out that Ford has quietly secured the number three spot in U.S. hybrid sales, and dominates the hybrid truck space with an estimated 80 percent market share.
Farley added that the company expects its electric Model E division to reach profitability in 2029, three years later than initially expected. By 2030, he still expects half of Ford’s global sales to be electrified vehicles. But most of those, he clarified, will be hybrids and extended-range electrics, not pure battery EVs.