Ford stopped making the all-electric Explorer and Mustang Mach-E SUVs in 2024, and that decision cost the company billions — but what does that mean for you as a consumer or someone thinking about electric vehicles?
Ford announced in 2024 that it would halt production of two key electric SUVs: the all-electric Mustang Mach-E and the planned all-electric Explorer. The company cited slower-than-expected EV sales, higher battery costs, and competition from cheaper Chinese manufacturers as reasons. Internally, Ford took a charge of roughly $4.7 billion against its earnings to cover the costs of shutting down these programs — money spent on tooling, inventory, and workforce adjustments that will not produce a vehicle.
For people who already own these vehicles, the cancellation does not affect your car or its warranty. For people considering buying an electric SUV, it means fewer options from Ford and potentially longer wait times if you want a different model. For Ford investors and employees, the financial hit was when ready and significant.
Key Takeaways
- Ford wrote off $4.7 billion in 2024 to cover the costs of stopping production of the all-electric Mustang Mach-E and the planned all-electric Explorer.
- The cancellation reflects Ford's decision to slow its EV rollout because battery costs remain high and consumer demand has not grown as quickly as the company predicted.
- Existing Mustang Mach-E owners keep their vehicles and warranties; the cancellation does not retroactively affect cars already sold.
- Other automakers including General Motors, Volkswagen, and Tesla continue producing electric SUVs, so buyers still have alternatives in the market.
Why Ford Took a $4.7 Billion Loss
A write-off is an accounting term for money a company spent that did not produce revenue. Ford's $4.7 billion charge covered several costs: the value of unsold inventory sitting in warehouses, the cost of retooling factories that were built to make these electric vehicles, severance and retraining for workers whose jobs shifted, and the sunk cost of development work that will not result in a finished product.
The company had invested heavily in battery production and EV manufacturing capacity. When demand did not materialize as quickly as Ford expected, those investments became liabilities rather than assets. Ford could not straightforward flip a switch and use an EV factory to make gas-powered trucks — the tooling, assembly lines, and supply chains are specific to each vehicle type.
This kind of loss is not unusual in automotive manufacturing, where companies bet billions on future models years before they reach customers. What made Ford's decision notable was the scale and the public nature of the reversal — the company had positioned itself as committed to the EV transition, and the cancellation signaled a major strategic retreat.
What Changed in the EV Market
Ford's decision reflected three real shifts in the electric vehicle landscape. First, battery costs — the single largest expense in an EV — have not fallen as fast as the industry predicted. Lithium, cobalt, and other materials remain expensive, which means electric vehicles cost more to manufacture than many consumers are willing to pay. Second, used gas-powered vehicles became cheaper as the used car market stabilized after the pandemic, giving buyers a lower-cost alternative to new EVs.
Third, Chinese automakers including BYD began flooding global markets with cheaper electric vehicles. In markets where they are sold, these vehicles undercut American and European manufacturers on price. Ford faced the choice of either matching those prices (which would mean lower profit margins) or accepting lower sales volumes. The company chose to slow its EV expansion instead.
None of this means electric vehicles are failing or disappearing. It means the transition is happening more slowly and unevenly than automakers predicted in 2020 and 2021, when many companies announced aggressive EV timelines.
How This Affects People Who Own a Mustang Mach-E
If you own a Mustang Mach-E, the cancellation does not change anything about your vehicle. Your warranty remains valid, Ford will continue to service the model, and parts will remain available. The company is not recalling the vehicle or discontinuing support.
What may change is resale value. When a model is discontinued, used versions sometimes become more desirable to collectors or enthusiasts — the "last of the line" effect. Alternatively, resale value can soften if buyers worry about long-term parts availability or service. The Mustang Mach-E is still relatively new (production began in 2021), so the used market is still forming. Resale trends will become clearer over the next few years.
If you were planning to buy a new Mustang Mach-E, you will not be able to order one. Ford stopped taking new orders in 2024. Used Mach-E vehicles are available through dealers and private sellers, but the supply is limited to cars already built.
What Other Automakers Are Doing
Ford's pullback does not mean the EV SUV market is disappearing. General Motors continues producing the Chevrolet Blazer EV and Equinox EV. Volkswagen makes the ID.4 and ID.5. Tesla produces the Model Y, which is one of the best-selling vehicles globally. Hyundai, Kia, BMW, and others all offer electric SUVs in various markets.
The difference is that these companies are moving more cautiously than they did in 2021 and 2022. They are investing in EV production but also maintaining gas-powered vehicle lines longer than originally planned. This is sometimes called a "slower transition" or a "staggered rollout" — the shift to electric is still happening, but on a longer timeline.
The Broader Cost to Ford and the Industry
Ford's $4.7 billion loss is one company's adjustment, but it reflects a broader pattern across the auto industry. General Motors, Volkswagen, and others have also announced delays, reduced EV production targets, or written off billions in EV-related investments. These losses add up to tens of billions of dollars across the industry.
The cost falls on shareholders (through lower stock prices and dividends), workers (through layoffs and wage pressure), and consumers (through higher prices for the vehicles that do get made, because companies need to recoup losses). It also affects suppliers who built factories specifically to make EV batteries and components — many of these suppliers are now operating below capacity.
From a broader economic perspective, these losses represent a mismatch between what companies predicted and what actually happened. That mismatch is expensive, but it is also how markets work: companies make bets, some bets pay off and some do not, and the losses get absorbed.
What This Means If You Are Considering an EV
Ford's cancellation does not mean you should avoid electric vehicles. It means you should be realistic about what is available and what it costs. Electric SUVs are still being made by multiple manufacturers, but they remain more expensive than comparable gas-powered vehicles. Battery costs are the reason, and those costs are not dropping as fast as the industry hoped.
If you want an electric SUV, you have options — just not from Ford's all-electric lineup. If you want a Ford electric vehicle, the company still makes the Mustang Mach-E (used models only, since new production stopped) and is developing other EVs for future release. If you want a lower-cost vehicle, gas-powered or hybrid options may make more financial sense right now, depending on your driving patterns and local fuel prices.
Frequently Asked Questions
Will Ford bring back the Mustang Mach-E or electric Explorer?
Ford has not announced plans to restart production of either vehicle. The company is focusing on hybrid vehicles and a smaller number of EV models. Future EV plans may include other vehicles, but the Mach-E and Explorer as all-electric models are discontinued.
Does the cancellation affect my warranty if I own a Mach-E?
No. Your warranty is tied to your vehicle, not to whether the model is still in production. Ford will continue to honor warranties and provide service for existing Mach-E owners. Parts availability may eventually become an issue decades from now, but that is not a near-term concern.
Why did battery costs not fall the way Ford expected?
Battery costs depend on the price of raw materials like lithium and cobalt, which are mined in limited quantities and subject to global supply constraints. Demand for batteries has grown faster than supply, keeping prices high. Additionally, labor costs for battery manufacturing in the United States are higher than in other countries, which adds to the final cost.
Can I still buy a new Mustang Mach-E?
No, Ford stopped accepting new orders for the Mustang Mach-E in 2024. You can buy used Mach-E vehicles through dealers or private sellers, but new production has ended. Other automakers' electric SUVs remain available for new purchase.
Does this mean electric vehicles are a bad investment?
Ford's cancellation reflects slower-than-expected market adoption and high battery costs, not a fundamental problem with electric vehicles. Whether an EV makes sense for you depends on your driving patterns, local electricity costs, and how long you plan to keep the vehicle. For some people, an EV saves money over time; for others, a gas or hybrid vehicle is more practical.