Ford halts production of the F-150 Lightning as Tesla's Cybertruck gains momentum.

Ford will halt production of its electric F-150 Lightning truck starting mid-November for nearly two months due to declining demand, increasing competition, and losses in its electric vehicle business. According to a Ford spokesperson, the company continues to adjust its production to achieve an optimal balance between sales growth and profitability. This production pause comes in a context where the Tesla Cybertruck has surpassed Ford's popular Mach-E, becoming the third best-selling electric vehicle in the United States. The situation is exacerbated by competition from General Motors, which outperformed Ford in electric vehicle sales during the third quarter of the year, selling 32,095 units compared to Ford's 23,509.

During a recent earnings call, Ford indicated that revenues from its Model e division are expected to reach $1.2 billion over the year, despite anticipating losses of approximately $5.5 billion, which, while slightly lower than expected, are still higher than the losses from 2023. Model e is Ford's electric vehicle division, reported separately from its gasoline car business Ford Blue and Ford Pro, its commercial line.

The F-150 Lightning is produced at the Rouge Electric Vehicle Center in Dearborn, Michigan. Ford will begin the production pause on November 15, a Friday, and will resume activities on January 6, 2025. This shutdown will include the holiday break that the company usually grants its U.S. plants starting December 23. This decision follows a one-third cut in the plant's workforce made at the beginning of the year and coincides with the approach of elections in the U.S., an important topic given that the electric vehicle industry is under debate in Michigan, a key state in the elections.

In light of weakened demand for electric vehicles and rising production costs for electric cars, Ford announced in August that it would delay its plans to manufacture a three-row electric SUV and the next generation of electric trucks. A year ago, Ford had already reduced its production goal for the F-150 Lightning to align with demand. During the investor call, Ford's CEO, Jim Farley, emphasized that the company is focused on hybrid vehicles, highlighting that many of its competitors do not offer hybrid versions for the F-150 or Maverick, creating a significant revenue opportunity that they cannot satisfy. Farley also noted that this has led the automaker to consider including hybrids across its lineup and to explore other partial electric solutions.