Why Ford and Ram Killed Their EV Pickups: A Common-Sense Look at the Market Reality

The auto industry's pivot away from pure electric pickups isn't a financial maneuver. It's a direct response to what customers are actually doing at the dealership. The numbers show a clear plateau in demand, forcing a retreat from the initial hype.

Total U.S. electric pickup sales contracted again in 2025, falling 15.6% year-over-year to just 90,019 units. That's a segment that was supposed to be the next big thing, but the math is simple: when sales drop for two years straight, the market isn't ready. This isn't just a blip; it's a sustained shift in consumer behavior.

Ford's F-150 Lightning, the segment's best-seller, is the starkest example. After a strong start, its sales fell to 27,307 units, down 18.5% last year. The company's subsequent decision to halt production of the original model indefinitely is management listening to the customer. It's a costly retreat, but it's a direct reaction to a product that couldn't find its footing against the practical needs of real truck buyers.

The deeper problem is a waning interest. Consumer enthusiasm has cooled significantly. While there's a slight uptick from last year, only one-third of Americans say they would very or somewhat seriously consider purchasing an EV as their next vehicle. That's down from 42% in 2022. For a company betting its future on a single product line, that kind of drop in serious consideration is a red flag. It means the promise of instant torque and quiet operation isn't enough to overcome the real-world hurdles of range anxiety, charging logistics, and higher upfront costs for the workhorse segment.

Stellantis made the same call, canceling its pure-electric Ram pickup last September. The automaker cited slowing demand for electric trucks in North America as a key reason, opting instead for a hybrid version. This isn't a retreat from electrification-it's a pivot to a form that better matches what people actually want to buy today. The bottom line is that the market has spoken. When the parking lot for electric pickups isn't full, and consumer interest is fading, the smart move is to listen.

The Pivot: From Pure EV to Extended-Range Hybrids

The new strategy is a straightforward fix for the problems that killed the pure electric pickups. Automakers are betting on a type of vehicle called an extended-range electric vehicle, or EREV. The key is in the name: it's an electric vehicle that can drive long distances without stopping to plug in. The gas engine in this setup doesn't power the wheels directly. Instead, it acts only as a generator, charging the battery while you drive. This is known as a "series hybrid" design.

The goal is simple: give buyers the smooth, quiet driving feel of an EV for most of their daily use, while completely eliminating the one major fear that kept them away-range anxiety. For a pickup truck, that fear is magnified when towing a trailer or taking a long road trip. The new EREVs are built to handle that. The Ram 1500 REV, for example, uses a 92-kilowatt-hour battery pack and a 130-kilowatt generator. Its gas engine is not connected to the wheels at all. It runs the generator, which sends electricity to the dual electric motors that actually drive the truck. This design allows the Ram to achieve a maximum driving range of up to 690 miles and a towing capacity of 14,000 pounds.

Ford is making the same pivot. Its next-generation F-150 Lightning will be an EREV, promising more than 700 miles of range. The company has already ceased production of the original pure-electric Lightning, signaling this is a permanent shift. The math is clear. When the parking lot for electric pickups isn't full, and consumer interest is fading, the smart move is to offer a product that matches real-world needs. The EREV is the answer: it delivers the EV experience when you want it, and the range of a gas truck when you need it.

The Financial and Production Shift

The pivot from pure electric pickups to hybrids is a costly but necessary correction. The numbers show Ford taking a massive $19.5 billion charge to write off its EV plans, a direct hit to its bottom line to be taken mostly in the current quarter. That's the price of admitting a strategy didn't work. Yet, the company is simultaneously raising its operating profit target for the year to $7 billion. The math here is clear: the charge is a one-time pain, while the profit target is driven by the strong, traditional sales that are now getting more focus.

This is a classic capital reallocation. Ford is pulling money out of a failing bet and putting it where the cash is. The company is retooling its EV plants to make gas-powered F-Series trucks, a move that directly addresses the market's demand. At the same time, it's focusing on smaller, more affordable EVs and hybrids, a strategy Ford president and CEO Jim Farley called a customer-driven shift to create a stronger, more resilient and more profitable Ford. The goal is to redeploy capital into higher-return growth opportunities like its market-leading trucks and vans.

Stellantis made the same call. The automaker canceled its fully-electric Ram pickup last September, citing slowing demand for electric trucks in North America as a key reason. It's not abandoning the segment, but redefining it. Instead of a pure EV, Stellantis will launch the Ram 1500 REV in 2026-a range-extended electric vehicle that uses a gas engine only as a generator. This hybrid design solves the range and towing problems that plagued the pure electric version, offering up to 690 miles of range and 14,000 pounds of towing capacity. The bottom line for both companies is the same: when the parking lot for electric pickups isn't full, the smart financial move is to build what people actually want to buy.

Catalysts and What to Watch

The real test for Ford and Stellantis now moves from boardrooms to parking lots. The pivot to extended-range hybrids is a logical fix, but its success hinges on a few critical factors that will play out in the coming year.

First, the 2026 launch of the Ram 1500 REV and the delayed Ford F-150 Lightning EREV are the first real-world sales and customer feedback tests. These aren't just new models; they are the companies' bets on whether a series hybrid can finally crack the pickup truck market. The Ram's version, with its 92-kilowatt-hour battery pack and 130-kilowatt generator, promises up to 690 miles of range. Ford's next-gen Lightning aims for more than 700 miles. Investors need to watch early sales numbers and owner reviews closely. Does the "gas generator" design solve the range anxiety that killed the pure EVs, or does it add complexity and cost without enough benefit?

Second, the new hybrid models must achieve meaningful sales volumes to justify the massive shift. The electric pickup segment remains marginal, with total U.S. sales of just 90,019 units in 2025. For the pivot to work, these new EREVs need to capture a significant share of the broader truck market, not just a niche of EV enthusiasts. The risk is that they become expensive, low-volume curiosities. The companies need to see these models move off the lot quickly and consistently to prove the strategy is viable.

Finally, the focus on profitable trucks and hybrids is key to funding the future. Ford's plan to raise its operating profit target to $7 billion, excluding the $19.5 billion charge, shows the capital reallocation is working. The money saved by killing the pure EV pickups and the cash flow from strong traditional truck sales must now be redeployed. This is the fuel for future innovation, whether it's in Ford's new battery energy storage business or Stellantis's other hybrid projects. The bottom line is that the success of this pivot isn't just about selling a few more pickups. It's about using the profits from the real-world utility of trucks to build a more resilient company, one that listens to what customers actually want to buy.