American electric pickup truck market shrinks amid low demand

The sector for electric pickup trucks in the United States is contracting, with major automakers scaling back models due to disappointing sales. Ford has decided to discontinue its F-150 Lightning after a sales drop, while Ram abandoned plans for its 1500 REV. Despite these setbacks, new affordable options are in development to revive interest.

The push for electric vehicles in the US has led automakers to develop pickup trucks aimed at traditional buyers, including models like the Ford F-150 Lightning, Rivian R1T, GMC Hummer EV, Chevy Silverado EV, and Tesla Cybertruck. These vehicles were designed with capabilities for hauling, towing, and off-roading, though some fall short of their gas-powered counterparts. For instance, the F-150 Lightning offers a maximum towing capacity of 10,000 pounds, compared to 14,000 pounds for the standard F-150.

In 2025, Ford's F-Series achieved sales of over 828,800 units, marking an 8.3% increase from the previous year. This included 84,934 units of the F-150 Hybrid, up 15%. However, the F-150 Lightning saw only 25,583 sales, a 18% decline from 2024, prompting Ford to announce its discontinuation due to lower-than-expected demand.

Ram's 1500 REV, announced in 2021, never entered production, with the company citing insufficient demand in North America. Ram also delayed its plug-in hybrid pickup. Tesla's Cybertruck has experienced a sharp sales drop, leading to the cancellation of certain trims.

Despite these challenges, the market is evolving. Ford is developing a $30,000 electric pickup under its Universal EV Production System to better compete with lower-cost options from China. CEO Jim Farley stated, “American innovation is how we compete and win against China and the rest of the world.” Additionally, Slate offers a customizable electric pickup that allows buyers to opt for basic features to reduce costs.

US drivers have shown interest in inexpensive trucks, such as a $10,000 model available in Southeast Asia, but strict safety regulations prevent such low prices domestically. Projections suggest Chinese electric pickups could reach $15,000 by 2027. Currently, options like the returning Chevy Silverado EV RST and the Rivian R1T remain available, alongside the Cybertruck.

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Photorealistic rendering of Tesla's upcoming compact SUV on a Chinese factory line with Elon Musk approving the design.
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Tesla developing compact affordable SUV amid strategy shift and sales slump, Reuters reports

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Tesla is developing a new compact electric SUV priced below the $36,990 Model 3 and measuring 168 inches (4.3 meters) long—shorter than the Model 3 (185.8 inches) and Model Y (188.7 inches)—according to Reuters citing four anonymous supplier sources. The all-new design awaits CEO Elon Musk's production approval and may launch first in China before expanding to U.S. and German factories, signaling a pivot back to core vehicles after a focus on robotaxis and humanoid robots.

Rivian has revealed details of its upcoming R2 mid-size electric SUV, positioning it as a more affordable alternative to its R1 models and a competitor to the Tesla Model Y. The vehicle will launch with higher trims this year, while the entry-level Standard model arrives in late 2027 starting at $45,000. Key features include varying power outputs and ranges up to 345 miles.

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Sales of used electric vehicles in the US jumped 12 percent in the first quarter compared to last year, driven by a flood of off-lease models and petrol prices topping $4 a gallon. New EV sales fell 28 percent year-on-year after the loss of a federal tax credit. Analysts say cheaper used EVs could draw more buyers into electrification.

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