Ford's $19.5 billion EV writedown signals tough road ahead for legacy carmakers

Dec 16 (Reuters) - Ford's $19.5 cardinal writedown tied to a reset of its electric-vehicle concern highlights the mounting challenges for bequest automakers arsenic they navigate ​waning request and a changed regulatory backdrop, analysts said connected Tuesday.

The writedown ‌was seen arsenic the astir disposable motion to day of the car industry's pullback from a exertion carmakers ‌wholeheartedly embraced aboriginal this decade, exacerbated by President Donald Trump's cancellation of electric-vehicle taxation breaks.

Ford Motor's shares roseate 1.3% earlier the doorbell connected Tuesday pursuing the announcement. Tesla edged 0.6% little and General Motors was flat. U.S.-listed shares of Stellantis were up astir 1%.

Washington's enactment ⁠has deepened the diminution successful ‌sales, forcing the Detroit Three automakers - Ford, GM and Chrysler-parent Stellantis - to rotation backmost their ambitious EV plans successful the U.S. and ‍pivot backmost to their hybrids and gasoline-powered vehicles.

"Ford's strategical reset is simply a wide acknowledgement of shifting marketplace realities and user demand," Morgan Stanley analysts said.

The charges are a "painful reset for the company" ​but 1 that is indispensable to align itself with user interests which would ‌eventually amended profitability and returns for Ford, Morgan Stanley said.

U.S. income of EVs fell astir 40% successful November pursuing the expiration of a $7,500 user taxation recognition connected September 30. The inducement had been successful spot for much than 15 years to stoke demand.

Since September, Ford shares gained 14%, GM roseate 34% and Tesla precocious astir 7%.

GM took ⁠a $1.6 cardinal complaint successful October arsenic it adjusted ​its EV mill plans, and warned that it ​would apt instrumentality much charges successful the future. Stellantis has besides backtracked connected immoderate of its EV plans, axing a scheduled electrical Ram ‍pickup motortruck and leaning ⁠into hybrids.

"This determination by Ford was to beryllium expected (and should beryllium expected for others) fixed a caller world connected the dramatically weaker U.S. EV environment, driven ⁠by weaker request and heavy reduced compliance requirements," Barclays analysts said.

It is, however, a measurement successful the ‌right direction, and tin assistance Ford amended profits, they added.

(Reporting by Kanchana ‌Chakravarty successful Bengaluru; Editing by Maju Samuel)