Ford (F, Financials) said Wednesday it will halt production of its F-150 Lightning electric pickup truck until January to “adjust production for an optimal mix of sales growth and profitability.”
After the last shift on Friday, Nov. 15, production will stop; the Michigan facility will stay idle for seven weeks including holiday breaks.
Spokesperson Emma Berg said Ford's main justification for the closure was a need to "adjust production for an optimal mix of sales growth and profitability". The choice coincides with more general difficulties in the Model e, the company's electric vehicle business, which had a $1.2 billion loss in the third quarter of 2024 and projects overall yearly losses of about $5 billion.
Ford once had great expectations for the F-150 Lightning as the pillar of its EV expansion plan, but the truck has run across challenges including price cuts and manufacturing delays. Ford is trying to grab and keep market share in the EV space in a market today joined by Tesla's (TSLA, Financials) Cybertruck, which has outsold the F-150 Lightning.
Ford has delivered 22,807 Lightnings as of the past quarter, albeit earlier expanding its Michigan plant with the intention of manufacturing 70,000 vehicles yearly. Ford's larger plan to increase profitability inside the Model e division—which includes electric cars and associated software—allows for a production stop.
For Ford, the F-150 Lightning is still a vital product while its Silicon Valley-based team is creating a more affordable EV platform.
Closing at $10.29, Ford dropped 1.72%, Wednesday; the stock is down 15.31% in the last six months.
