DETROIT — Ford Motor expects to record about $19.5 billion in special items related to a restructuring of its business priorities and a pullback in its all-electric vehicle investments, the company announced Monday.

The Detroit automaker said most of those charges will occur during the fourth quarter. That will be followed by $5.5 billion in cash to be charged through 2027, and the majority of that chunk will be paid next year, Ford said.

The charges will impact the automaker’s net results but not its adjusted earnings. The automaker said Monday it was increasing its guidance of adjusted earnings before interest and taxes to about $7 billion in 2025. That’s in line with a target from earlier this year, before the company lowered expectations to between $6 billion and $6.5 billion in adjusted EBIT in October.

The charges announced Monday, including $8.5 billion in write-downs of EV assets, are connected to major changes to Ford’s business plans.

The new plans include refocusing investments on hybrid vehicles, including plug-in models rather than pure EVs; canceling a next generation of large all-electric trucks in exchange for smaller, more affordable EVs; and a rebalancing of its investments in core products such as trucks and SUVs.

The changes are the latest under Ford CEO Jim Farley and his “Ford+” restructuring plan that has taken on many different forms since he initially announced it as an EV growth plan in 2021.

“We evaluated the market, and we made the call,” Farley told CNBC’s “Closing Bell Overtime” on Monday. “We’re following customers to where the market is, not where people thought it was going to be, but where it is today.”

The EV segment has experienced a sales slump domestically after the Trump administration put an early end in September to a $7,500 federal tax credit previously available for EV buyers in the U.S.

Farley said on CNBC that policy “wasn’t the only reason why we made this choice,” but he acknowledged it did play a role.

Ford also said Monday that its all-electric F-150 Lightning pickup will transition to an extended-range EV, or EREV, that includes an electric powertrain as well as a gas-powered generator, and it announced plans to use battery plants in Kentucky and Michigan for a new stationary energy storage business.

“The last couple of months have been really clear to us,” Farley told CNBC’s Phil LeBeau. “The very high-end EVs — the $50,000, $70,000, $80,000 vehicles — they just weren’t selling.”

Ford said the changes are expected to provide “a path to profitability” for its Model e electric vehicle business by 2029, targeting annual improvements beginning in 2026. The automaker also said it expects the changes to improve profits in its traditional Ford Blue unit and Ford Pro commercial and fleet business “over time with early signs of benefits in 2026.”

The automaker said it expects approximately 50% of its global volume by 2030 will be hybrids, EREVs and fully electric vehicles, up from 17% in 2025.

“These are big decisions that we believe will pay off for years to come for our customers, our employees, American jobs and manufacturing,” Andrew Frick, president of the Model e and Blue businesses, said Monday during a media call. “Ford is following the customer. We are looking at the market as it is today, not just as everyone predicted it to be five years ago.”

Ford said it will concentrate its North American electric vehicle development on its new, low-cost, flexible Universal EV Platform that’s expected to underpin a “high-volume family of smaller, highly efficient and affordable electric vehicles.”

The first vehicle from the new platform will be a “fully connected midsize pickup truck” assembled at the company’s Louisville Assembly Plant starting in 2027.

The company also expects its new storage business to be producing and shipping units by 2027 for things such as “data centers, the electric gird and much more,” Frick said.

“This is a compelling opportunity. It’s a market with huge potential and strong demand,” he said. “We will have 20 gigawatt hours of annual capacity for this market.”

Ford stock rose about 2% in after-hours trading Monday.

Shares of Ford closed Monday at $13.65, down less than 1%. Ford stock as of Monday’s close was up nearly 40% this year.

China stocks rallied Monday to their best day in 16 years, with related U.S. ETFs also soaring after recent economic stimulus buoyed investor optimism in the market.

The Shanghai Composite Index surged 8.06% in its best day since September 2008, and capping a nine-day win streak for the index. It ended September up 17.39%, its first monthly gain in five and its best monthly performance going back to April 2015.

The Shenzhen Composite Index closed up 10.9%, its best day since April 1996. It gained 24.8% in September, its best month going back to April 2007.

The China ADR index was last higher by 1.4%. It climbed nearly 6% earlier in the day.

The U.S.-listed shares of human resources company Kanzhun gained 2% along with online video company Bilibili. Online brokerage company Futu Holdings rose 14%.

The KraneShares CSI China Internet ETF (KWEB) gained 1%. The U.S.-listed shares of Alibaba and JD.com was slightly higher.

Chinese stocks have been on a tear after Beijing last week unveiled a slew of economic stimulus measures including interest rate cuts to support the weak property market. On Thursday, state media said Chinese President Xi Jinping and other top leaders affirmed the measures.

“While we don’t know for sure if there’s going to be enough to really kick the economy back into gear, it’s certainly the right first step,” said Art Hogan, chief market strategist at B. Riley Securities. “I think the impact of a strengthening China can’t be underestimated.”

“On balance, this is going to be an ambiguous positive for markets going forward,” he added. “And I think that there’s a lot of investors are going to have to quickly recalibrate their expectations.”

More U.S. investors are bullish on the market following the move. Last week, billionaire hedge fund founder David Tepper said he is overwhelmingly bullish on Chinese equities, having bought “everything” related to China following the Federal Reserve’s recent rate cut.

— CNBC’s Gina Francolla, Nick Wells, Lim Hui Jie and Evelyn Cheng contributed to this report.