In its latest setback, Ford is cutting back on another significant EV investment. The company is scaling back plans at its $3.5B EV battery plant in Michigan as it adjusts to market demand.
Ford said it was “re-timing and resizing some investments” in a statement Tuesday. Although it remains bullish on its long-term strategy, Ford is reducing its investment and cutting jobs at its Michigan EV battery plant.
The company is cutting production capacity at the facility by over 40%. Ford now expects the facility to produce around 20 GWh, a big difference from the 35 GWh initially expected.
Ford is also reducing its investment in the facility by nearly $1.5B while cutting the expected number of jobs to 1,700.
35 GWh annual output of LFP batteries, starting in 2026
400,000 EVs in 2026, or 20% of Ford’s expected 2M output.
Those plans are now being scaled back drastically. The plant will now produce enough LFP batteries for around 230,000 EVs annually.
Ford F-150 Lightning lineup (Source: Ford)
Ford’s chief communications officer, Mark Truby, told reporters (via Bloomberg) that EV adoption “is not growing at the pace” they expected. Truby said Ford wants to be “really disciplined” about spending and matching future demand.
Ford to scale back Michigan EV plant in latest setback
Ford’s EV plant in Michigan was quickly targeted over its partnership with Chinese battery giant CATL. Plans called for Ford to own the plant while licensing CATL’s tech to build the LFP batteries.
The move is part of Ford’s plans to scale back EV investments. Ford said it was delaying its 600,000 run rate goal until next year over the summer.
Ford F-150 Lightning production (Source: Ford)
More recently, it cut one of three shifts at its Rouge EV complex, where the F-150 Lightning is built. Ford’s CFO John Lawler explained last month the company has also “taken out some Mach-E production.
Lawler added that Ford is “slowing down several investments, including making a decision with SK On to delay the second BlueOval SK JV battery plant in Kentucky.”
Ford is pushing back around $12 billion in spending on EVs. Sales of Ford’s electric pickup fell 46% in Q3. The company lost around $36,000 on every EV sold during the quarter.
2023 Ford Mustang Mach-E (Source: Ford)
Truby said the decision was based on “demand and the expected growth for EVs, our business plans, our product cycle plans,” and the ability to create a sustainable plant.
He added, “Labor costs was one of the factors we were looking at.” Ford reached an agreement with the UAW, which increased wages by 25%.
Despite this, Ford said it plans to move ahead with the project. It expects to begin producing LFP battery cells in 2026.
Electrek’s Take
Plans to scale back its Michigan EV battery plant is the latest setback for Ford. The company continues delaying EV investments alongside rival General Motors.
Meanwhile, rivals, including Hyundai and Volvo, are doubling down as they work to expand their brands.
Hyundai surpassed GM and Ford in EV sales in Q3. Including Kia, Hyundai claimed 7.5% of the market, while GM’s Chevy (5.9%) and Ford (5.5%) fell in the rankings.
Jose Munoz, Hyundai’s global president, told Reuters last week, “Based on what I see, I need more. If I had more capacity today, I could sell more cars.”
Meanwhile, Volvo expects its smallest and cheapest electric SUV, the EX30 (check out our review), to keep momentum rolling next year.
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After several months of waiting, Lucid Air drivers now have access to Android Auto. Lucid (LCID) launched the popular feature through a software update this week.
Lucid Air owners gain access to Android Auto
Lucid promised it was coming, and now it’s finally here. “Android Auto is one of the most requested features,” according to Lucid’s head of software engineering, Dr Jean-Philippe Gauthier.
All Lucid Air vehicles now have access to Android Auto Smart Driving Companion through an OTA software update (Lucid OS 2.7.0).
You can now view Android apps, messages, and other media on Lucid’s massive 34″ Air Glass Cockpit. For those with Android 11 or higher, you can connect to Android Auto wirelessly. Those with Android 9.0 or higher will require a USB cable.
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Lucid said it would launch the popular feature late last year, but it’s just beginning to roll out to Air owners this week. The company website says the Gravity SUV “will support both wireless Apple CarPlay and Android Auto,” but no further specifics are mentioned.
Lucid Air Glass Cockpit navigation screen with Android Auto (Source: Lucid)
The 2025 Lucid Air is the “world’s most efficient car” with over 420 miles of EPA-estimated driving range. It also boasts the highest MPGe of any EV at 146 MPGe.
After resuming Gravity deliveries in April, Lucid is quickly ramping up production of its first electric SUV. Lucid expects to produce 20,000 vehicles this year, more than double the 9,000 it made last year.
Lucid Air (left) and Gravity (right) Source: Lucid
The Lucid Gravity GT is now available for sale at $94,900, boasting an impressive range of up to 450 miles. Later this year, Lucid will launch the lower-priced Touring trim, starting at $79,900.
After launching its largest discounts to date earlier this month, Lucid is currently offering over $30,000 off select 2025 Air models.
Looking to test one out for yourself? You can use our links below to find current deals on the Lucid Air and Gravity near you.
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Another entry-level electric car is on the way. The Honda Super EV Concept may look a bit funky, but it could be the automaker’s next big hit at an affordable price.
Is Honda launching an affordable EV?
We will get our first full look at the funky new Super EV Concept at the 2025 Goodwood Festival of Speed in West Sussex, England, next month.
The concept will make its global debut during the event, previewing a “new, small-size” electric vehicle. Despite its compact size, the company promises that it will be fun to drive, with an experience that is “unique to Honda.”
Designed as an A-segment electric SUV, Honda says the affordable EV offers an “uplifting, heart-pounding driving experience.”
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The company is already testing prototypes in the UK. Although Honda confirmed plans to launch a production model in the future, it didn’t specify a date or offer any other technical details.
Honda will also use the event to hold the European premiere of the electric 0 Series SUV. Earlier this year, we got a look at the upcoming electric SUV (also a bit funky looking) after a prototype was showcased at a Formula One event in Tokyo.
Honda Super EV Concept (Source: Honda)
You can see Honda is using the same purple camouflage used for the 0 Series electric SUV to disguise it. The Super EV Concept looks like a futuristic successor to the Honda e. However, with a new EV platform, batteries, and motor, Honda’s new models look to be a significant upgrade.
The new EV SUV will be one of seven new electric vehicles Honda plans to launch by 2030. A production version of the Super EV concept is expected to join it.
Honda 0 electric SUV hits the road for the first time (Source: Honda)
The new Super EV Concept will make its official debut, climbing the 1.16-mile (1.856 km) hill course at Goodwood FOS, which runs from July 10 to July 13.
Will Honda launch its new entry-level EV in the US? According to a Nikkei report earlier this year, Honda plans to launch an affordable EV, priced under $30,000 in the US, following the 0 Series electric SUV and sedan.
We’ll have to wait until closer to launch for confirmation. Check back soon for more info. We’ll keep you updated with the latest.
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Tesla (TSLA) has reportedly told employees that it will pause production at Gigafactory Texas, where it produces Model Y and Cybertruck vehicles, for the second time in as many months.
In late May, Tesla extended a long weekend into a week-long production shutdown at Gigafactory Texas.
The move came amid lower demand and inventory buildups.
Now, Tesla told employees that it is again shutting down Model Y and Cybertruck production at Gigafactory Texas over the first week of July.
With the Fourth of July being a Friday this year, it was going to be a long weekend, but Tesla again decided to extend the production shutdown from June 30th through the following week, according to employees talking to Business Insider.
Tesla claimed that it will enable the company to perform “maintenance and improvements on production lines.” Employees are being offered paid time off or to come in for training.
As we have previously reported, Tesla has been throttling down production of the Cybertruck in 2025 as sales are currently tracking about half of last year.
Tesla reported a 13% decrease in deliveries in Q1 2025 compared to the same period last year, which the automaker attributed to its Model Y design changeover reducing production.
However, Tesla’s deliveries are currently tracking to be down even more in the second quarter compared to last year, despite Tesla having ramped up production.
Electrek’s Take
What’s going to be the excuse this quarter? As I reported earlier today, Tesla is currently tracking to deliver 355,000-360,000 units in Q2, which would be down 19-20% compared to 2024.
It would be an even steeper decline even with the new Model Y.
It clearly wasn’t the problem.
The automaker had already reduced its production capacity at most factories in 2024, when it ran at about 60% capacity due to lower demand.
Now, Tesla is stopping production of its best-selling Model Y with the new design twice in two months?
This is not looking good.
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