Remember when your friend swore they were going to become a yoga instructor, bought $2,000 worth of equipment, then quit after two weeks? That’s basically Ford right now, except instead of yoga mats, it’s electric vehicles, and instead of $2,000, it’s $19.5 billion.
Ford just announced they’re taking a massive charge as they dramatically pivot away from their all-electric dreams. CEO Jim Farley is spinning this as “customer-driven,” which is corporate speak for “we totally misread the room.”
What Actually Happened Here?
Ford went all-in on electric vehicles when everyone was screaming about the EV revolution. They were going to electrify everything – trucks, vans, your grandmother’s shopping cart. The problem? Customers weren’t buying it. Literally.
Turns out people want hybrids, not full EVs. Who could have seen that coming? (Spoiler: pretty much everyone who’s ever tried to find a charging station on a road trip.)
The F-150 Lightning – Ford’s electric truck that was supposed to change everything – is getting the axe. The next version will be a hybrid with a gas generator, because apparently “extended range” is code for “we give up on batteries alone.”
The Real Problem
This isn’t just about Ford being wrong about EVs. It’s about a company that burned through billions without a backup plan. Their Model e division (yes, they named their EV unit after a Tesla model – subtle) has been hemorrhaging money faster than a crypto investor in 2022.
The issues were obvious: EVs over $50k are tough sells, charging infrastructure is still sketchy, and range anxiety is real. But Ford doubled down anyway, probably because admitting you’re wrong is harder than lighting money on fire, apparently.
The New Plan (Take It With Salt)
Ford now says hybrids and EVs will make up 50% of their sales by 2030. This is the same company that just took a $19.5 billion reality check, so maybe don’t bet your retirement on that forecast.
They’re not alone in this mess – GM also scaled back their “100% EV by 2035” promise faster than you can say “supply chain issues.” It’s almost like the entire industry got caught up in their own hype.
Should You Buy Ford Stock?
Ford’s stock is up 40% this year, which sounds great until you realize it’s mostly because their truck business is solid, not because they’re automotive geniuses. The stock is trading above historical averages while the company just admitted to a $19.5 billion oopsie.
With economic headwinds picking up and auto demand softening, this might not be the best time to bet on a company that just proved it can spectacularly misread market trends.
The bottom line? Ford’s pivot might be smart, but it’s also expensive proof that sometimes the obvious choice (gradual transition to hybrids) beats the flashy one (all EVs, all the time). Sometimes being boring beats being bold – especially when bold costs you nearly $20 billion.