Toronto, Ontario -- In this week's Tuesday Ticker, major announcements from publicly traded automotive companies show companies pay a high cost for changing direction on electric vehicles. Ford took nearly US$20 billion in charges as it scaled back EV plans, while a lidar supplier filed for bankruptcy after losing its biggest customer.
Ford Pivot
On December 15, the Ford Motor Company announced it will face approximately US$19.5 billion ($26.9 billion) in special charges related to a major shift in its electric vehicle strategy. The charges include US$8.5 billion ($11.7 billion) in EV asset write-downs, US$6 billion ($8.3 billion) for ending a battery joint venture with SK On, and US$5 billion ($6.9 billion) in program-related expenses.
The news comes after the OEM made dramatic moves related to EVs. The automaker is canceling its next-generation all-electric F-150 Lightning and moving toward hybrids and extended-range EVs instead. Ford now aims to have 50 percent of its global volume be hybrids, extended-range EVs, and battery EVs by 2030, up from 17 percent in 2025.
Despite the massive costs, Ford raised its 2025 adjusted EBIT guidance to approximately US$7 billion ($9.7 billion) and said it expects its EV business to reach profitability by 2029.
Ford stock rose approximately two percent in after-hours trading Monday following the announcement. With shares trading around US$10, the gain added roughly US$0.20 per share.
Luminar Collapse
Texas-based Lidar supplier Luminar filed for Chapter 11 bankruptcy protection in the Southern District of Texas. The company listed assets between US$100 million ($138 million) and US$500 million ($690 million), and liabilities between US$500 million ($690 million) and US$1 billion ($1.4 billion).
The bankruptcy came after Luminar lost its largest customer, Volvo, which cut its expected lifetime sensor volumes by approximately 90 percent. Volvo also made lidar optional rather than standard on the EX90 SUV.
Luminar has agreed to sell its semiconductor subsidiary to Quantum Computing Inc. for US$110 million ($152 million) cash, subject to higher bids through a court-supervised sale process. The company is also seeking to sell its lidar business through bankruptcy.
Luminar stock plummeted 58 percent on Monday following the bankruptcy announcement. Shares had been trading around US$1.40 before falling to approximately US$0.59—a loss of roughly US$0.81 per share in a single day.
GM Gains
GM is forecast to finish 2025 as the top-selling automaker in the U.S. for the fourth consecutive year. The company's market share rose to 17.3 percent from 16.8 percent in 2024.
On December 19, GM also announced it will add native Apple Music integration to select 2025 and newer Cadillac and Chevrolet models. This comes after the company previously eliminated CarPlay and Android Auto support from its vehicles.
GM stock rose 17.30 percent over the past month, climbing from approximately US$71 to US$83.28 by December 22—a gain of roughly US$12.28 per share.
