Ford CEO Jim Farley did not mince words while explaining some of the drawbacks of fully electric large SUVs and trucks.
During Ford’s Q4 2024 earnings call on Wednesday, the automaker shared its electrification roadmap, reiterating that it would focus on small and medium-sized EVs that are more economically viable instead of going all guns blazing with battery-electric models across all segments.
“For larger retail, electric utilities, the economics are unresolvable,” Farley said. “These customers have very demanding use cases for an electric vehicle. They tow, they go off-road, they take long road trips. These vehicles have worse aerodynamics and they’re very heavy, which means very large and expensive batteries.”
Photo by: InsideEVs
That’s indeed true. If you want a decent electric pickup truck from the likes of Tesla or General Motors, be prepared to drain your bank account. The non-work-truck version of the 2025 Chevy Silverado EV starts at around $70,000 before destinations and fees. The Tesla Cybertruck starts at $79,990. The GMC Sierra EV starts at $92,000. They also have massive battery packs and deliver terrible real-world efficiency.
Consequently, the sales of electric pickups didn’t look great in 2024. Sure, the Cybertruck was the best-seller among these EVs. However, the truck was once rumored to have a million-plus reservations, and Tesla was preparing a production capacity of over 250,000 units a year. Its sales fell far short at 38,965 units, according to Cox Automotive. Plus, the hype is already cooling off. Sales of Ford’s F-150 Lightning grew year-over-year but paled in comparison to gas-powered pickups. The company has had to cut production multiple times to keep it in line with demand.
“Retail customers have shown that they will not pay any premium for these large EVs, making them a really tough business case,” Farley said.
Profitability for the large family haulers will instead come from “PHEVs, hybrids and EREVs” that on “one tank of gas can get over 700 miles of range, but still drive most miles electric,” he added.
Ford wants to take a novel approach with its large SUVs and trucks. As Bloomberg first reported on Tuesday, the automaker is now pursuing extended-range electric vehicles. EREVs have an electric powertrain like a traditional battery-electric vehicle, but they also get a gas-powered generator for backup. The generator is tasked with recharging the battery, but it’s the e-motors that drive the wheels at all times.
Heavy-duty EVs only make sense for Ford’s commercial customers, Farley said. Commercial customers can charge electric delivery vans and work trucks at depots, and don’t have the same range anxiety as retail customers. They usually don’t over-buy batteries, like retail customers do, focusing instead on their exact use cases. He added that small and medium-sized trucks and SUVs were the sweet spot for pure EVs as they require lower-cost batteries and fit the use case for daily commuters.
And as for the models that are in that sweet spot, Farley said, “we’re deep in the development of our next generation vehicles that we believe will be affordable, high volume and great for our business.”
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