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

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

Thu, September 17, 2026 at 6:56 PM GMT+3 4 min read

• F +2.86%
• STLA +3.35%

In a report published September 7, 2026, the Wall Street Journal said Stellantis N.V. (NYSE:STLA), along with Hyundai and Ford Motor Company (NYSE:F), is preparing to launch "extended-range" electric vehicles (EREVs) in the US that drive purely on battery power but carry a small gasoline engine that works only as an onboard generator. Stellantis plans to introduce an extended-range Jeep Grand Wagoneer later this year or early next, followed by the Ram 1500 REV, which the Journal reports can travel roughly 690 miles on a full battery and tank of gas combined. Stellantis previously scrapped an all-electric version of the Ram 1500 in favor of this range-extended design.

BULL CASE

EREVs directly address the biggest barriers that have slowed EV use in the U.S. Ford Motor Company (NYSE:F) and Stellantis can give customers electric driving for most daily trips while keeping a gasoline generator available when the battery runs low. Stellantis N.V. (NYSE:STLA) plans to offer more than 100 miles of electric range in its new EREVs. The Ram 1500 REV could deliver up to 690 miles of total range. That combination could appeal to buyers who want an EV but remain concerned about charging availability and long-distance travel.

The technology could make electric pickups much more practical for towing. Large electric trucks such as the F-150 Lightning struggled to attract buyers partly because towing can sharply reduce battery range. An EREV can use its gasoline generator to recharge the battery during long trips and while towing. It allows Ford and Stellantis to offer electric driving without forcing truck owners to plan around charging stops.

Ford and Stellantis can target customers who rejected conventional EVs without abandoning electrification. Ford plans to bring back the F-150 Lightning as an EREV, while Stellantis plans EREV versions of the Jeep Grand Wagoneer and Ram 1500. The strategy gives both companies another way to participate in the EV market as U.S. consumers have adopted battery-only vehicles more slowly than automakers expected.

BEAR CASE

EREVs remain an unproven strategy in the U.S. market. Plug-in hybrids have captured only a small share of U.S. vehicle sales. Ford and Stellantis N.V. (NYSE:STLA) now need to prove that extended-range models can generate stronger demand. If customers continue to favor conventional hybrids or gasoline trucks over EREVs, the new models could fail to generate the sales volumes needed to justify the automakers' investment in the technology.

The added technology could make EREVs expensive since the analysts and engineers expect the new vehicles to cost more than comparable gas vehicles and potentially more than some full EVs. Hence, customers may appreciate the extra range and flexibility without accepting the higher price. It creates a major challenge for Ford Motor Company (NYSE:F) and Stellantis as they try to generate real sales volumes.

EREVs do not eliminate the broader challenges that hurt battery-only electric trucks. Ford previously halted production of the F-150 Lightning, while large electric pickups such as the Lightning and Chevrolet Silverado EV struggled to make strong sales. EREVs can reduce range and charging concerns. But Ford and Stellantis still need to prove that customers will pay for the technology and use it as intended rather than simply choosing conventional gas or hybrid vehicles.

Hedge Fund Sentiment

Hedge funds pulled back from Stellantis N.V. (NYSE:STLA) heading into its extended-range EV push: holders fell to 26 in the second quarter from 32 in the first, and the combined position value nearly halved to $195 million from $424 million, according to Insider Monkey's database. Ford Motor Company (NYSE:F)'s holder count held steady at 50 funds while its position value dipped slightly to $1.02 billion from $1.12 billion, and GM's holder count slipped to 75 from 77 with value down to $4.87 billion from $6.08 billion, suggesting the pullback from legacy and mixed-powertrain automakers has been broader than Stellantis alone.

Conclusion

Ford and Stellantis are betting that extended-range EVs can solve the range and charging problems that have held back electric pickups while preserving the driving experience of an EV. The technology could make electric trucks more practical for long trips and towing, but higher prices, added complexity, and weak consumer understanding could limit use. Investors need to see whether EREVs can attract mainstream buyers who rejected battery-only EVs without creating another expensive powertrain strategy that struggles to generate real volumes.

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