Ford Motor Company executes a significant strategic pivot, shifting focus away from mass EV production. The automaker now prioritizes its more profitable hybrid and internal combustion engine (ICE) vehicles. This change responds directly to high costs and challenges in the EV market, including the reduction of federal tax credits.
As part of the restructuring, Ford announced it will take a $19.5 billion charge. This charge relates specifically to scaling back its EV operations.
Investors met the move with relief, viewing it as a pragmatic step toward a clearer path to profitability. Furthermore, the company reaffirmed its adjusted free cash flow guidance. Ford also raised its guidance for adjusted earnings before interest and taxes (EBIT).