Stellantis (STLA) and Ford (F) Bet Gas Engines Can Fix America’s EV Range Anxiety

Stellantis (STLA), Ford (F), and Hyundai are developing extended-range electric vehicles (EREVs) for the U.S. market, addressing range anxiety and charging concerns. An EREV combines an electric drivetrain with a small gasoline engine that only generates electricity when the battery runs low. Stellantis plans to launch an EREV Jeep Grand Wagoneer later this year or early next year, followed by the Ram 1500 REV, capable of traveling up to 690 miles combined.

Ford is bringing back the F-150 Lightning as an EREV, while Stellantis will offer EREV versions of the Jeep and Ram. EREVs aim to give consumers electric driving for daily trips while retaining a gasoline generator for longer journeys, making electric trucks more practical for towing and charging concerns. However, EREVs remain an unproven strategy in the U.S. market, with plug-in hybrids capturing only a small share of sales.

The new vehicles could be more expensive than conventional gas trucks or full EVs, limiting their potential adoption. Hedge funds have reduced their holdings in Stellantis and Ford, indicating a broader pullback from legacy and mixed-powertrain automakers. Investors will need to see whether EREVs can attract mainstream buyers without becoming another costly powertrain strategy with limited volumes.