Ford Motor Co. (F) shares climbed in after-hours trading Monday after the automaker unveiled a strategic overhaul designed to chase profitability instead of electric vehicle market share. The message is clear: Ford is betting on what it knows best.
The Strategic Shift
Ford announced it's redirecting resources toward higher-return opportunities, which translates to leaning into its U.S. manufacturing strength to expand truck and van production. The company is also launching what it hopes will be a high-growth battery energy storage business, capitalizing on surging demand from data centers.
On the hybrid and EV front, Ford expects hybrids and electric vehicles to represent 50% of global sales by 2030, but the company is expanding hybrid options to give customers more choices. For pure EVs, Ford is concentrating North American development on a new, low-cost Universal EV Platform. The first vehicle off that platform will be a fully connected midsize pickup truck arriving in 2027.
As for the F-150 Lightning? Production of the current generation has wrapped up. Ford is reworking plans for the next-generation Lightning to include extended-range features, but don't expect Ford Model e, the EV division, to turn a profit until 2029. The company does say improvements will start showing up in 2026.
Repurposing the Factories
Ford is reconfiguring its manufacturing footprint to match the new strategy. The Tennessee Electric Vehicle Center is getting a new name, the Tennessee Truck Plant, and will shift to expanding truck and van production. Meanwhile, the Ohio assembly plant will become a central hub for Ford Pro, the company's commercial vehicle and services division.
"This is a customer-driven shift to create a stronger, more resilient and more profitable Ford," said Jim Farley, president and CEO of Ford. "The operating reality has changed, and we are redeploying capital into higher-return growth opportunities: Ford Pro, our market-leading trucks and vans, hybrids and high-margin opportunities like our new battery energy storage business."
The Battery Play
Ford's new battery energy storage system business targets the exploding demand from data centers that need reliable backup power. The company plans to invest about $2 billion over the next two years to scale this operation, betting it can leverage its battery expertise beyond vehicles.
Updated Guidance and What's Next
With Monday's announcements, Ford raised its 2025 EBIT guidance to approximately $7 billion and reaffirmed full-year free cash flow guidance of $2 billion to $3 billion. The company noted it's currently tracking toward the high end of that cash flow range.
There's a catch, though: Ford expects to record about $19.5 billion in special item charges, mostly tied to the EV business changes. The bulk of those charges will hit in the fourth quarter.
Ford will report fourth-quarter financial results on Feb. 10, 2026. Analysts are currently expecting adjusted earnings of eight cents per share and revenue of $40.59 billion.
Market Reaction: Following the announcements, Ford shares initially jumped to around $14 before pulling back slightly. The stock was up 1.03% in after-hours trading at $13.79 at the time of publication Monday.
