NEW YORK, December 29, 2025, 03:53 ET — Market closed
- Ford shares last traded at $13.31, down about 0.4% from the prior close.
- Battery supplier LG Energy Solution has canceled another major order days after Ford ended a $6.5 billion supply deal, underscoring the EV demand slowdown.
- Investors are looking to Ford’s next earnings update for clarity on the cash impact of its $19.5 billion EV charge and 2026 demand.
Ford Motor shares were last down about 0.4% at $13.31, as investors headed into the final trading days of the year weighing fresh signs of stress across the electric-vehicle supply chain.
The latest battery-contract cancellations matter for Ford because they land just as the automaker rewrites its EV playbook, after booking a $19.5 billion charge and scrapping several battery-only programs.
Investors are watching whether Ford’s pivot toward gasoline and hybrid models can protect margins as demand for fully electric cars cools and U.S. policy has reduced support for EVs.
South Korea’s LG Energy Solution said in a regulatory filing on Friday it had canceled a 3.9 trillion won ($2.7 billion) battery contract with Freudenberg Battery Power Systems after Freudenberg dropped its battery-business plans.
That announcement came a week after LG Energy Solution said Ford had terminated an EV battery supply deal worth about 9.6 trillion won ($6.5 billion), also disclosed in a regulatory filing.
Ford said this month it will take a $19.5 billion writedown — an accounting charge that reduces the book value of assets — and is killing several EV models, pointing to policy shifts and weaker EV demand.
“When the market really changed over the last couple of months, that was really the impetus for us to make the call,” CEO Jim Farley told Reuters. Reuters
Among the changes, Ford said it will replace the fully electric F-150 Lightning with an “extended-range” electric model that uses a small gasoline engine to recharge the battery, and it is scrapping a next-generation electric truck program and planned electric commercial vans. Reuters
Ford said it expects the writedown to be taken primarily in the fourth quarter and continue through 2027, with about $8.5 billion tied to canceled EV models, around $6 billion tied to the dissolution of a battery joint venture with SK On, and $5 billion in “program-related expenses.” Reuters
The company also raised its 2025 guidance for adjusted EBIT — earnings before interest and taxes, a common operating profit yardstick — to about $7 billion from a prior range of $6 billion to $6.5 billion.
The EV pullback is not isolated. Reuters has previously reported that General Motors has also reshaped EV plans, including taking charges tied to capacity adjustments, as demand softened after incentives changed.
Supply-chain stress showed up again on Monday when South Korea’s L&F said the value of a battery-material supply agreement with Tesla had been reduced sharply, highlighting how volatile EV-related demand forecasts have become.
Ford’s stock has traded near the upper end of its 52-week range, with Investing.com showing a 52-week band of $8.44 to $13.99 and a recent session range roughly in the low-$13s.
Before the next session, traders will be watching for any further disclosures from battery suppliers and automakers that could reshape expectations for EV production volumes in 2026, as well as any new signals on U.S. EV policy after the expiration of the federal $7,500 consumer tax credit on Sept. 30.
Ford’s next major catalyst is its quarterly earnings report, which Investing.com lists for Feb. 10. Investors are likely to focus on the timing of EV-related charges, updates on hybrid and extended-range product plans, and any changes to profit guidance.
Safety and regulatory costs remain another watch item. Ford has faced a series of U.S. recalls in recent weeks, including one tied to a loss of park function affecting more than 272,000 vehicles, according to NHTSA.
