Ford Motor Co. has taken a 19.5 billion US dollars charge in a sweeping EV strategy overhaul, marking a costly detour on the road to electric-vehicle profits, Bloomberg reported.

The company is abandoning plans for an all-electric F-Series truck, shifting focus back to gasoline and hybrid models, and repurposing a battery plant previously earmarked for EV production. Ford also announced it will reengineer its flagship electric pickup, the F-150 Lightning, as an extended-range hybrid.

The charges reflect what executives described as a misjudgment of EV demand, particularly for large pickup trucks, where consumers remain highly sensitive to price, range, towing capacity, and charging infrastructure.

Ford expects the revised approach to push its EV operations into profitability by 2029. The company also raised its full-year 2025 earnings guidance to seven billion US dollars before interest and taxes, up from a previous forecast of six billion to 6.5 billion US dollars. Most of the charges will be booked in the fourth quarter, according to a statement on Monday.

“These moves will make our EV operations profitable by 2029,” said Andrew Frick, head of Ford’s EV division. The unit lost 5.1 billion US dollars last year, and Ford has cautioned that losses could widen in 2024.

Chief Executive Officer Jim Farley told Bloomberg TV the decision was necessary to stem unprofitable investment. “It didn’t make sense to keep plowing billions into products that we knew would not make money,” he said.