Ford Shifts EV Strategy to Boost Profitability: What to Know
Ford announced it is delaying production of its electric vehicle truck and discontinuing its three-row SUV. Here's what that means for investors.


Ford Motor (F) announced Wednesday that it is shifting its electric vehicle (EV) strategy to deliver profitable and capital-efficient growth, including offering a wider range of electrification options at lower prices and increasing ranges. Wall Street is embracing the news, sending Ford's stock higher in intraday trading.
Ford's plan includes delaying the production of its all-electric pickup truck to the second half of 2027. It was initially expected to begin production next year.
The company is also canceling plans for its three-row sports utility vehicle (SUV), and instead prioritizing hybrid models and electric commercial vehicles, according to CNBC. Ford will incur a special non-cash charge of about $400 million due to the adjusted plans, which may also result in additional expenses and cash expenditures of up to $1.5 billion.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The automaker also said it would realign its U.S. battery sourcing to reduce costs and boost capacity for current and future production. "An affordable electric vehicle starts with an affordable battery," said Ford CEO Jim Farley in a statement. "If you are not competitive on battery cost, you are not competitive."
"We're committed to creating long-term value by building a competitive and profitable business," said Ford Chief Financial Officer John Lawler. "With pricing and margin compression, we've made the decision to adjust our product and technology roadmap and industrial footprint to meet our goal of reaching positive EBIT [earnings before interest and taxes] within the first 12 months of launch for all new models."
Is Ford stock a buy, sell or hold?
Ford Motor has underperformed on the price charts in 2024, down more than 4% on a total return basis (price change plus dividends) vs a 30% return for the S&P 500. This has Wall Street sitting on the sidelines when it comes to the consumer discretionary stock.
True, the average price target among the 26 analysts following F stock tracked by S&P Global Market Intelligence is $13.43, representing implied upside of about 24% to current levels. However, the consensus recommendation is a Hold.
"We believe the market still lacks faith in Ford's EV and software strategy, which compounds the higher cash balance and lack of higher cash returns issue as investors are concerned about the return they will see on that cash," says UBS Global Research analyst Joseph Spak (Neutral, the equivalent of Hold). While the analyst believes electrification is where the market is headed over the intermediate term, investors are currently seeking profits from internal combustion engine (ICE) vehicles.
However, there are some bulls in Ford's corner. Financial services firm BofA Securities, for instance, has a Buy rating and $20 price target on Ford stock.
BofA analyst John Murphy recently went on the road with Ford's CEO and chief financial officer. "The conversation focused on Ford's efforts to reduce warranty costs, opportunities to grow earnings in Ford Pro, and the company's progress in cutting EV costs," Murphy said, with the executives reiterating that the company plans to make "no changes to its capital allocation strategy" and "pay out 40% to 50% of free cash flow as dividends and deploy capital to grow the business."
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
The Most Tax-Friendly States for Investing in 2025 (Hint: There Are Two)
State Taxes Living in one of these places could lower your 2025 investment taxes — especially if you invest in real estate.
-
Want To Retire at 55? See If You Can Answer These Five Questions
Who said you can’t retire at 55? If you say yes to these questions, you may be on your way to an early retirement.
-
Potential Trouble for Retirees: A Wealth Adviser's Guide to the OBBB's Impact on Retirement
While some provisions might help, others could push you into a higher tax bracket and raise your costs. Be strategic about Roth conversions, charitable donations, estate tax plans and health care expenditures.
-
One Small Step for Your Money, One Giant Leap for Retirement
Saving enough for retirement can sound as daunting as walking on the moon. But what would your future look like if you took one small step toward it this year?
-
This Is What You Really Need to Know About Medicare, From a Financial Expert
Health care costs are a significant retirement expense, and Medicare offers essential but complex coverage that requires careful planning. Here's how to navigate Medicare's various parts, enrollment periods and income-based costs.
-
I'm a Financial Planner: Could Partial Retirement Be the Right Move for You?
Many Americans close to retirement are questioning whether they should take the full leap into retirement or continue to work part-time.
-
From Mortgages to Taxes to Estates: How to Prepare for Falling Interest Rates
As speculation grows that the Federal Reserve will soon start lowering interest rates, now is a good time to review your financial plans for housing, estate, taxes, investing and retirement to make the most of potential changes.
-
This Is How Lottery Winners Build Lasting Legacies, From a Financial Professional
Winning a massive lottery jackpot, like the recent $1.4 billion Powerball, requires seeking immediate legal and financial counsel, protecting your identity and winnings and planning your legacy.
-
S&P 500 Slips Ahead of Fed Week: Stock Market Today
All eyes are on the Federal Reserve ahead of next week's critical policy meeting.
-
September Fed Meeting: Live Updates and Commentary
The September Fed meeting is a key economic event, with Wall Street keyed into what Fed Chair Powell & Co. will do about interest rates.