Ford Goes From “Save The Planet” to “F!@# The Environment” with New $6 Billion Cost-Cutting Move

The S&P 500 and Nasdaq dusted off the cobwebs and got back on track, with the Fed minutes sparking hopes for a September rate cut—something we haven’t seen since the Fed slashed them down to zero on March 15th, 2020. Crazy times.

The S&P 500 rose 0.42%, nearing its all-time high, while the Nasdaq gained 0.57%. The Russell 2000 outperformed with a 1% increase. 

Now, all eyes are on Jerome Powell’s upcoming Jackson Hole speech, with investors waiting for any hint of a 0.5% rate cut. It’s like Thanos said, “You couldn’t live with your own failure. Where did that bring you? Back to me.” And just like that, here we are, back at Powell’s feet, hoping he snaps his fingers and saves the markets.

In “Single Stockland,” Target shot up over 11%, dropping Q2 earnings that had Wall Street on a shopping spree. Meanwhile, Macy’s tripped over its own sales forecast, plunging 13%.

Ford Goes From “Save The Planet” to “F!@# The Environment” with New $6 Billion Cost-Cutting Move

Remember when CEO Jim Farley (the famous comedian’s cousin) confidently declared that Ford wasn’t just going to “dabble in EVs” but was “going all in” on an electric future? Well, much like the Lions’ Super Bowl hopes, the hype didn’t quite match reality. Today, Ford announced they’re pumping the brakes on their all-out EV push and shifting back to a more familiar path: hybrids. This pivot comes just weeks after a disastrous Q2 earnings report that wiped $19 billion off their market cap.

So, why are they backing down after publicly announcing they were going to fight for EV leadership? Ford took a hard look at their EV strategy and decided it was time to pump the brakes. Instead of throwing more cash into electric vehicles that are bleeding money faster than a gambler on a losing streak, they’re shifting gears to hybrids. It’s almost like they saw Toyota crushing it and thought, “Why not copy what works?”

Ford once had grand plans to crank out two million EVs by 2026, but reality hit like a brick wall. With $6 billion in losses piling up in their EV division, Ford’s CFO, John Lawler, made it clear: “These vehicles need to be profitable, and if not, we will pivot and adjust.” Translation: We’re done setting cash on fire just to chase this EV fad. Just like Batman realized in the 1989 film starring Jack Nicholson, “you gotta give the people what they want.”

So, what’s Ford doing instead? They’re slashing their EV budget from 40% to 30% and scrapping that much-anticipated three-row electric SUV. So, those plans for epic electric family road trips? Yeah, they’re on hold. But don’t count EVs out just yet—Ford’s still got plans for an electric delivery van in 2026 and some new electric pickups by 2027. But make no mistake, hybrids are where Ford’s heart is now. 

This pivot might be a gut punch for President Biden’s ambitious goal of making EVs and plug-in hybrids half of all new car sales by 2030, but Ford’s shareholders seem to be giving it a nod of approval—albeit a small one. The stock ticked up just over 1% on the news, and while that’s not exactly a rally, Ford will gladly take any win it can get, especially considering the stock is still down nearly 11% for the year.

Stock.News has positions in Ford.