$20B EV Collapse Forces Ford to Kill Best-Selling Electric Truck – Jobs Lost in Kentucky

Ford Motor Company has abruptly halted production of the F-150 Lightning, the top-selling electric pickup in the U.S., just four years after its celebrated launch. Announced on December 15, the move ends output by the close of 2025, signaling a sharp retreat from ambitious electric vehicle plans amid mounting losses and shifting market realities.

Financial Losses Mount

The F-150 Lightning, priced around $55,000, generated deep losses for Ford, estimated at $36,000 per vehicle in certain quarters. Initial development goals targeted a $40,000 base price, but costs exceeded projections due to manufacturing overruns, limited towing range, and buyer hesitation on high prices. Even with $7,500 federal tax credits aiding purchases, profitability remained elusive.

Ford’s Model e division, dedicated to electric vehicles, has bled over $15 billion since 2022: $2.2 billion in 2022, $4.7 billion in 2023, $5.1 billion in 2024, and $3.6 billion through the third quarter of 2025. In Q3 2025 alone, it posted a $1.4 billion operating loss on $1.8 billion in revenue, yielding a negative 77.8 percent margin. Sales peaked at 10,005 units in Q3 2025 as buyers rushed ahead of tax credit changes, but economics deteriorated further.

Massive Restructuring Charge

The company disclosed a $19.5 billion special charge, among the largest EV-related write-downs in industry history. This includes $8.5 billion for scrapped future EV programs, such as large pickups planned for Tennessee plants; $6 billion to exit the BlueOval SK battery joint venture with SK On of South Korea; and $5 billion for other asset impairments and restructuring.

Wall Street absorbed the news calmly, with shares rising 1 to 2 percent. Ford lifted its 2025 adjusted EBIT forecast to about $7 billion, from $6.0 to $6.5 billion previously, and expects positive free cash flow near the top of its $2 to $3 billion range. Analysts at Morgan Stanley called the steps painful yet essential for aligning with customer demands, projecting Model e profitability by 2029—delayed three years from prior estimates.

Kentucky Plant Closure Hits Workers

The BlueOval SK facility in Glendale, Kentucky, which started production in August 2024, will lay off all 1,600 employees by February 14, 2026. The site, backed by $250 million in state economic aid, promised enduring jobs in the EV shift but lasted under four months in operation.

Ford plans to retool the plant over 16 months for battery energy storage systems, creating 2,100 positions by late 2027. Workers, many relocated nationwide, now face a prolonged jobless stretch. Governor Andy Beshear’s office arranged job fairs listing openings within a 45-minute drive, though some employees voice doubts about rejoining Ford.

A narrow union vote in August 2025—with 526 votes supporting United Auto Workers affiliation versus 515 opposing, a margin of 11 votes—complicates matters. Ford contested 41 ballots, and a National Labor Relations Board decision could mandate bargaining over severance and protections if recognition precedes closure.

Policy Shifts and Division Performance

The Trump administration’s elimination of the $7,500 EV tax credit on September 30, 2025, triggered a demand plunge: U.S. EV sales dropped 41.2 percent in November, ending a 15-year subsidy era. Ford’s Lightning sales crashed 72 percent year-over-year to 1,006 units that month.

Further regulatory easing—relaxed fuel economy standards and dropped EV sales penalties—freed automakers to prioritize returns over mandates. Ford Pro, its commercial fleet unit, shone with $2.0 billion EBIT on $17.4 billion revenue (11.4 percent margin), accounting for 77 percent of total EBIT on 34 percent of sales. Ford Blue, covering gas and hybrids, added $1.5 billion EBIT on $28.0 billion revenue.

Pivot to Hybrids and Storage

Ford will rebrand the Lightning as an extended-range electric vehicle with a gasoline generator for extended trips, offering nine to ten days of daily electric range and over 700 total miles. This targets F-Series users like contractors needing towing capability.

Hybrids boomed: F-150 PowerBoost sales hit 22,212 in Q3 2025, up 10.3 percent; Maverick Hybrid reached 63,516 through September, up 11.5 percent. Total F-150 and Maverick hybrids sold 142,597 units in 2024, a 39 percent rise from 102,464 in 2023.

A $2 billion investment will convert EV capacity for utility-scale battery storage, with the Kentucky plant aiming for 20 GWh annual output by late 2027. The data center storage market reached $3.6 billion in 2025 and could hit $6.1 billion by 2035; the broader battery energy storage systems market may exceed $99 billion by 2033.

This recalibration mirrors peers: General Motors took $1.6 billion in EV cutback charges; Stellantis axed its electric Ram 1500; Tesla Cybertruck sales fell 62.6 percent to 5,385 in Q3 2025. Ford’s moves underscore profitability pressures in electrification, redirecting resources to hybrids, fleets, and storage amid evolving consumer and policy landscapes.