Ford’s first stab at an EV revolution was big, bold, and, as it turns out, a bust. The F-150 Lightning was supposed to prove electric trucks could work. Instead, it proved that “these very large EVs that cost $50,000, $60,000, $70,000, we don’t believe in”—CEO Jim Farley’s own words. Now, he’s reversing course, betting on smaller, more efficient EVs and extended-range hybrids instead. The age of giant electric pickups is over before it even began, and Ford’s CEO is saying the quiet part out loud.

Customers didn’t want a $50K electric truck that could barely tow without draining its range. Fleet buyers? Sure, they’ll make it work because of the low cost per mile. But retail customers looked at the Lightning, looked at the price tag, then walked away. “Retail customers have shown that they will not pay a premium for these large EVs,” Farley admitted during the recent Wolfe Research Auto, Auto Tech, and Semiconductor Conference. Ford’s learned the hard way that massive electric trucks just don’t make sense.

The future of Ford EVs: Smaller, smarter, and actually practical

If you want to know where Ford’s headed next, listen to Farley: “We have to start to get back in love with smaller vehicles.” He’s not wrong. Smaller EVs with low energy consumption and 800-volt charging are the future. Smaller batteries unlock all kinds of perks. They’re cheaper to build, cheaper to buy, and can go a lot farther on a 15-minute charge—all because they don’t require a battery the size of a small moon.

As I previously wrote, road-tripping in an EV isn’t the nightmare some make it out to be—but that’s only if you’re in the right kind of EV. A small, efficient crossover with fast charging, like the Hyundai Ioniq 5, can keep up with gas cars on long hauls. But a massive truck hauling a huge battery? That’s a recipe for disaster. Ford is finally catching on.

The company scrapped plans for an all-electric three-row SUV. Instead, it’s doubling down on hybrids and extended-range EVs. “We think (extended-range electric vehicle) or hybrid is a much better, more profitable investment in our capital,” Farley said. These vehicles will deliver over 700 miles of range with a small gas engine acting as backup.

What does range-extended mean? In the case of the F-150 Lightning, it would have Ford’s patented generator in a waterproof box in the bed. Fill up the tank, fire up the gasoline engine, and it can recharge its own battery on the road.

Ford EVs need to do what EVs do best

Ford’s pivot is long overdue. EVs shine in stop-and-go traffic, on known routes, and in fleet use cases where range is predictable. “For larger retail electric utilities, the economics are unresolvable,” Farley admitted. Translation: giant EV semi trucks make no sense, but smaller, high-efficiency EVs such as local delivery vehicles could be a game-changer.

Ford’s bet on the Lightning didn’t pay off. But its next EVs just might. Farley is pushing for smaller vehicles with better range and faster charging—because that’s what actually makes sense. “The sweet spot that has emerged for EVs are small and medium-size pickups and SUVs.” The F-150 Lightning may fade away, but Ford’s EV strategy just might survive.