03:08 PM EST, 12/16/2025 (MT Newswires) -- Ford Motor's ( F ) $19.5 billion write-down on its electric vehicle assets is a "bold action" that will change its footprint while entering new business, UBS said in a Monday note.

"We see this as a bold action and write down that likely removes years of future losses," the report said.

The report also pointed to Ford entering a new business in energy storage system that will require investment but could end up being a clever repurposing of some assets.

"We believe there is a supply/demand imbalance for ESS LFP cells/systems in the US that provides F with an opening," the note said. LFP refers to lithium iron phosphate.

"But over time, we think they will need to show good execution and a continued business case with strong market structure...to justify committing further capital for growth," it added.

UBS kept its neutral rating with a $12.5 price target.

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