Two automakers are wagering that a compact gasoline engine can solve America’s electric-vehicle range worries. Stellantis and Ford are getting ready to release “extended-range” electric vehicles, or EREVs, in the US that run solely on battery power but come with a gasoline generator that functions only as an onboard charger. The plan is straightforward: offer drivers electric travel for their usual outings while holding a gas engine in reserve when the battery falls short.
The Journal report, dated September 7, 2026, says Stellantis is planning an extended-range Jeep Grand Wagoneer later this year or early next, followed by the Ram 1500 REV. The Ram 1500 REV 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.
The Bets Behind the Push
Both Stellantis N.V. (NYSE:STLA) and Ford Motor Company (NYSE:F) are making this bet simultaneously. Hyundai is likewise getting ready for EREVs, though the report does not name which models are involved. The timing stands out: Stellantis is stepping back from pure electric vehicles and pushing harder on a hybrid path that keeps the battery as the main propulsion system while adding a gas generator.
Up to 690 miles of total range is what the Ram 1500 REV can deliver. That pairing might draw in shoppers who prefer an electric vehicle yet still worry about charging stations and road trips. The system could resolve one of the main issues with big electric trucks, including the F-150 Lightning and the Chevrolet Silverado EV, by making electric pickups far more practical for hauling.
Why the Range-Extended Design Matters
The F-150 Lightning and other large electric trucks failed to win many customers partly due to towing cutting battery range severely. A plug-in hybrid with an engine can draw power from its gasoline generator while on a long trip and while hauling, letting the battery charge itself. That setup lets Ford and Stellantis sell electric trucks without asking buyers to plan their routes around charging points.
The strategy gives both companies another way to participate in the EV market as US consumers have adopted battery-only vehicles more slowly than automakers expected. 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 combined approach targets customers who rejected conventional EVs without abandoning electrification entirely.
The Cost Problem
New technology could push up the cost of EREVs. Experts and engineers see these vehicles costing more than comparable gas cars and possibly more than some full EVs. That presents a serious hurdle for Ford and Stellantis as they work toward meaningful sales numbers.
The extra reach and freedom offered by these vehicles might win over buyers even if they don’t accept the greater cost. The worst-case scenario is simple: plug-in hybrids have taken hold of just a small portion of American car sales. Now Ford and Stellantis must show that longer-range models can draw more interest from buyers. Should customers keep choosing regular hybrids or gas-powered trucks instead of extended-range electric vehicles, those new models could fall short of the sales numbers needed to back up the automakers’ investment in the technology.
“Hedge funds pulled back from Stellantis N.V. (NYSE:STLA) heading into its extended-range EV push.”
Hedge Funds Pull Back
Insider Monkey’s database shows that hedge funds have stepped back from Stellantis ahead of its extended-range EV push. The number of holders dropped to 26 in the second quarter down from 32, while the combined position value was cut nearly in half to $195 million from $424 million.
Ford’s holder count held steady at 50 funds while its position value dipped slightly to $1.02 billion from $1.12 billion. GM’s holder count slipped to 75 from 77 with value down to $4.87 billion from $6.08 billion. The pullback from legacy and mixed-powertrain automakers has been broader than Stellantis alone.
What the New Models Have to Prove
Battery-only electric trucks face serious problems that EREVs do nothing to solve. Ford put an end to production of the F-150 Lightning, and larger electric pickups like the Lightning and Chevrolet Silverado EV have had a hard time selling well. EREVs ease worries about range and charging, yet Ford and Stellantis must still show buyers are willing to pay for the technology and actually use it instead of settling for standard gas or hybrid models.
Long-distance travel and towing could become more practical for electric trucks if this technology catches on, yet higher costs, increased complication, and weak consumer knowledge stand in the way of widespread adoption. The question for investors is whether EREVs can win over mainstream buyers who passed on battery-only EVs without producing another costly powertrain approach that fails to reach meaningful sales.
Key Facts Box
- Ram 1500 REV: 690 miles of total range on a full battery and tank of gas
- Jeep Grand Wagoneer EREV: planned later this year or early next
- F-150 Lightning EREV: planned as a return model
- Hedge fund positions: Stellantis holders fell to 26 from 32; position value nearly halved to $195 million from $424 million
- GM position: Value down to $4.87 billion from $6.08 billion
The Verdict on the Bet
On paper, the argument for EREVs holds together well. They answer the main reasons that have kept electric vehicles from catching on in the US. Yet the practical objections carry more force. Plug-in hybrids have barely made a mark on US sales, and the added expense has not yet shown that buyers will pay for it.
Both Stellantis and Ford are placing their chips on extended-range EVs as a way to overcome the range and charging obstacles that have slowed adoption of electric pickups while keeping the driving feel of an EV intact. This design approach might make electric trucks more practical for long road trips and hauling, though higher costs, extra mechanical complication, and weak consumer knowledge about the technology could hold back its use. Shareholders need to watch whether EREVs can draw in mainstream buyers who passed on battery-only EVs without producing yet another costly powertrain plan that fails to reach real sales volumes.
Source material: “Stellantis (STLA) and Ford (F) Bet Gas Engines Can Fix America’s EV Range Anxiety,” Yahoo Finance.
Get the Notebook.
The day's best stories and every fresh verdict, in plain English, in your inbox by seven. One email a day, no more.