Ford Motor Co. (F) is pulling the plug on its F-150 Lightning electric pickup truck, marking a dramatic retreat from the premium EV market that the automaker now admits simply wasn't working.

A Massive Write-Down and Strategic Pivot

In an official statement released Monday, Ford announced it's taking a staggering $19.5 billion charge as it pivots toward hybrids globally and low-cost EVs for the U.S. market through its Universal EV Platform.

The company said the first vehicle from this Universal EV Platform will be a fully connected midsize pickup truck assembled at its Louisville Assembly Plant starting in 2027. Ford also expects that approximately 50% of its global volume will eventually comprise hybrids, Extended Range Electric Vehicles (EREVs), and EVs.

The Reality Check on Premium EVs

CEO Jim Farley didn't mince words when explaining the decision. Rather than continuing to pour billions into large EVs that Ford knows "will never make money," the company is shifting its focus, Farley told the Wall Street Journal on Monday.

In a separate CNBC interview, Farley acknowledged that the company's premium electric offerings in the $50,000 to $80,000 range "just weren't selling." He added that $70,000 EVs "didn't make sense" for the automaker's strategy moving forward.

Enter the F-150 EREV

The F-150 Lightning isn't completely disappearing, though. Ford is replacing it with an Extended Range Electric Vehicle (EREV) version that will offer an estimated 700 miles of range, addressing one of the key concerns consumers have had about pure electric trucks.

Broader Pullback from EV Ambitions

The Lightning cancellation comes amid a broader retreat from Ford's earlier EV ambitions. The company recently ended its EV manufacturing venture with South Korean battery manufacturer SK On. Under the new arrangement, Ford will wholly own the Kentucky plant, while SK On assumes ownership of the battery plant in Tennessee.

Meanwhile, Farley recently praised President Donald Trump's relaxation of Corporate Average Fuel Economy (CAFE) Standards, calling it a move that would help Ford focus on American-made products. Farley had previously predicted that EV adoption in the U.S. would plateau at just 5%.

Expanding in Europe with Renault

While pulling back in the premium EV space domestically, Ford is expanding its presence in Europe through a partnership with French automaker Renault Group. Under this arrangement, Ford will lead design and driving dynamics for two Ford-badged EVs built on Renault's Ampere platform.

Price Action: F shares declined 0.80% to close at $13.65 on Monday but bounced back 1.11% to $13.80 during after-hours trading, according to market data.