Ford's $19.5B EV Write-Down Sparks Turbulence: Can Hybrid Pivot Salvage the Blue Oval?

Summary
• Ford Motor (F) plunges 2.48% to $13.33 amid $19.5B EV write-down and strategic pivot to hybrids
• Options chain sees surging activity in 13.5-strike puts and calls ahead of December 26 expiration
• 52-week range narrows to $8.44–$13.99 as sector peers like Tesla (-3.93%) amplify market jitters

Ford’s abrupt retreat from all-electric trucks and $19.5B EV write-down has ignited a sharp selloff, with shares trading near 52-week lows. The stock’s 2.48% drop reflects investor skepticism over CEO Jim Farley’s pivot to hybrids and extended-range EVs. With the options market pricing in heightened volatility and the broader auto sector under pressure, Ford’s strategic shift has become a litmus test for the viability of legacy automakers in the EV transition.

EV Strategy Overhaul and $19.5B Write-Down Trigger Sharp Selloff
Ford’s 2.48% intraday decline to $13.33 follows a $19.5B write-down on EV investments and the cancellation of the F-150 Lightning’s all-electric variant. The company’s pivot to hybrids and gasoline range-extenders—announced December 15—signals a retreat from its aggressive EV bets, which have underperformed against Tesla’s vertical integration and cost efficiency. The write-down, representing 36% of Ford’s $54.5B market cap, underscores structural challenges in scaling EV production profitably. Analysts highlight that Ford’s EV division has hemorrhaged $13B since 2023, with Q3 2025 losses at $1.4B. This strategic reversal has rattled investor confidence, particularly as Chinese EV manufacturers like BYD and NIO accelerate global expansion.

Auto Sector Volatility Intensifies as Tesla Leads Decline
The broader auto sector is under pressure, with Tesla (-3.93%) and Rivian (-0.03%) amplifying market jitters. Ford’s pivot to hybrids mirrors Stellantis’ recent shift away from electric pickups, reflecting shared challenges in balancing EV costs with consumer demand. However, Ford’s 2.48% drop outpaces peers like Toyota (+0.01%) and GM (-1.22%), highlighting skepticism over its hybrid strategy’s profitability. The sector’s mixed performance underscores the tension between legacy automakers’ transition costs and Tesla’s $1.63T valuation, which dwarfs Ford’s $54.5B market cap.

Navigating Ford’s Volatility: ETF and Options Playbook
• MACD: 0.204 (bullish), Signal Line: 0.156, Histogram: 0.048 (positive divergence)
• RSI: 64.71 (neutral), Bollinger Bands: 12.52–13.83 (price near lower band)
• 200D MA: $11.29 (price above), 30D MA: $13.17 (resistance near $13.17)

Ford’s technicals suggest short-term bearish momentum but long-term bullish potential. The stock is trading near its 200D MA and within Bollinger Bands, with RSI indicating no overbought/oversold extremes. For options, F20251226P13.5 (put) and F20251226C13.5 (call) stand out. The put offers 114.29% leverage and 23.01% implied volatility, while the call has 54.84% turnover and 25.43% IV. Both contracts exhibit high gamma (0.7468 and 0.6828) and theta (-0.0095 and -0.0094), making them sensitive to price swings and time decay. A 5% downside to $12.66 would yield 114.29% payoff for the put (strike $13.5) and 54.84% for the call. Aggressive bulls may consider F20251226C13.5 into a bounce above $13.17, while bears could short F20251226P13.5 for a 114.29% leverage play.

Backtest Ford Motor Stock Performance
The backtest of the impact of a -2% intraday plunge in the Footsie 100 (F) performance from 2022 to the present shows a negative overall effect. The maximum return during the backtest period was -0.07%, indicating that the F performance declined by up to 0.07% following the intraday plunge.

Hybrid Pivot or Hail Mary? Ford’s Crossroads Demand Cautious Positioning
Ford’s strategic pivot to hybrids and range-extenders is a high-stakes gamble against a backdrop of $19.5B in EV write-downs. While the stock’s technicals hint at short-term bearish momentum, long-term bullish signals like the 200D MA and Bollinger Band positioning suggest resilience. Investors should monitor Tesla’s (-3.93%) performance as a sector barometer and watch for Ford’s 13.17–13.166 support/resistance cluster. For now, a cautious approach—leveraging options like F20251226P13.5 for downside protection or F20251226C13.5 for a potential rebound—offers balanced exposure to Ford’s volatile transition.