Ford Takes Massive $19.5 Billion EV Charge: Is This How to Run an Automaker?[Stocks](https://moneymorning.com/category/article/stocks/) # Ford Takes Massive $19.5 Billion EV Charge: Is This How to Run an Automaker?  by Rich Duprey  December 17, 2025  Share it: **Ford** ( [F](https://moneymorning.com/stocks/f/)) is absorbing a staggering $19.5 billion charge as it dramatically pivots its electric vehicle strategy, shifting focus from pure battery electric vehicles (BEVs) to hybrids and extended-range electric vehicles (EREVs). CEO Jim Farley described the move as "a customer-driven shift to create a stronger, more resilient and more profitable Ford." He emphasized that consumers are demanding hybrids over full BEVs, stating the company is now prioritizing what customers actually want, rather than what industry analysts assumed they would. This realignment includes canceling several large EV programs and repurposing facilities, while expanding hybrid options across nearly the entire lineup. Yet, this pivot comes at an enormous cost – an expensive lesson in misreading market demand that, in hindsight, should have been an obvious, more balanced plan from the start. ## What Sparked Ford's Dramatic Pivot? The change of heart stems from sluggish EV demand, massive losses in Ford's Model e division, high production costs, and [shifting regulatory landscapes](https://moneymorning.com/2025/07/23/gm-and-stellantis-lose-billions-as-tariffs-reshape-u-s-auto-industry/). Ford has bled billions on EVs, with the Model e unit posting heavy losses amid lower-than-expected sales of models like the F-150 Lightning. Production of the current all-electric Lightning has ended, with the next generation transitioning to an EREV setup featuring a gas generator for extended range. The company is also canceling plans for large all-electric trucks and vans, redeploying EV-focused plants for gas, hybrid, and even battery energy storage production.  Weak consumer uptake for pricey BEVs – especially those over $50,000 – has been a key driver of the change. Infrastructure gaps, range anxiety, and the expiration of federal incentives have cooled the market. Ford is responding by broadening powertrain choices to be more inclusive: gas, traditional hybrids, performance hybrids, and EREVs. This pragmatic approach contrasts with earlier aggressive EV bets made during the industry's electrification frenzy. ## Skepticism Around Ford's New Projections Ford now forecasts that hybrids, EREVs, and BEVs will comprise 50% of global sales by 2030, a sharp rise from the 17% they currently represent. Investors should view this target skeptically, given Ford's track record of overoptimistic EV forecasts. Notably, this 50% figure echoes projections the company made years ago before repeatedly scaling back its ambitions. Ford isn't alone in retreating; rival **General Motors** ( [GM](https://moneymorning.com/stocks/gm/)) once vowed a 100% EV fleet by 2035 but has since dramatically curtailed production plans and taken its own impairments. Both legacy automakers overestimated BEV adoption speed, highlighting how quickly market realities can upend bold commitments. ## Bottom Line Ford stock has surged around 40% year-to-date through mid-December, reflecting strength in its core truck and commercial businesses. However, it trades at valuations often above five-year averages in key metrics like P/E (currently around 10x versus historical averages nearer to 7x). With this massive $19.5 billion charge hitting during a potentially worsening economic environment – complete with softening auto demand, policy uncertainties and rising unemployment – F stock actually carries elevated risk. It's not an attractive buy at current levels for cautious investors seeking durable growth. **Beat the market, without relying on brokers or biased institutions.** Email(Required) Instagram This field is for validation purposes and should be left unchanged. Subscribe By submitting your email address, you will receive a free subscription to _Money Morning!_ and occasional special offers from us and our affiliates. You can unsubscribe at any time and we encourage you to read more about our [Privacy Policy](https://moneymorning.com/privacy/). ## One moment, please: Processing your submission ###### More Trending Stories from Money Morning - [$10,000 Invested in MercadoLibre 5 Years Ago Would Be How Much?!](https://moneymorning.com/2026/02/27/10000-invested-in-mercadolibre-5-years-ago-would-be-how-much/) - [Is a Buyout the Hope PayPal Investors Have Been Waiting For?](https://moneymorning.com/2026/02/27/is-a-buyout-the-hope-paypal-investors-have-been-waiting-for/) - [Here's Why ACM Research Is a Buy Despite Its Earnings Miss](https://moneymorning.com/2026/02/27/heres-why-acm-research-is-a-buy-despite-earnings/) - [Axon Enterprise Stuns the Market With Huge Q4 Earnings Beat](https://moneymorning.com/2026/02/27/axon-enterprise-stuns-the-market-with-huge-q4-earnings-beat/) - [Anthropic Mauls CrowdStrike Again. Here's Why the Cybersecurity Stock Is a Buy](https://moneymorning.com/2026/02/25/anthropic-mauls-crowdstrike-again-heres-why-the-cybersecurity-stock-is-a-buy/) Share it: ### Popular Articles ###### [Here's Why ACM Research Is a Buy Despite Its Earnings Miss](https://moneymorning.com/2026/03/01/why-acm-research-is-a-buy-despite-earnings/) March 1, 2026 ###### [$10,000 Invested in MercadoLibre 5 Years Ago Would Be How Much?!](https://moneymorning.com/2026/02/27/10000-invested-in-mercadolibre-5-years-ago-would-be-how-much/) February 27, 2026 ###### [Here's Why ACM Research Is a Buy Despite Its Earnings Miss](https://moneymorning.com/2026/02/27/heres-why-acm-research-is-a-buy-despite-earnings/) February 27, 2026 ###### [Axon Enterprise Stuns the Market With Huge Q4 Earnings Beat](https://moneymorning.com/2026/02/27/axon-enterprise-stuns-the-market-with-huge-q4-earnings-beat/) February 27, 2026 Notifications reCAPTCHA Recaptcha requires verification. [Privacy](https://www.google.com/intl/en/policies/privacy/) \- [Terms](https://www.google.com/intl/en/policies/terms/) protected by **reCAPTCHA** [Privacy](https://www.google.com/intl/en/policies/privacy/) \- [Terms](https://www.google.com/intl/en/policies/terms/)