TLDR
- Ford stock rose over 9% on May 22, hitting a 52-week high of $14.94
- Ford Energy signed a five-year deal with EDF Power Solutions to supply up to 20 GWh of battery storage
- The deal redirects idle EV factory capacity toward AI data center energy demand — a market analysts value at ~$10 billion
- Ford also booked a $1.3 billion noncash tariff benefit tied to a recent Supreme Court ruling
- Morgan Stanley kept its Equalweight rating on Ford with a $14.00 price target
Ford Motor (F) stock climbed more than 9% on Thursday, May 22, touching a 52-week high of $14.94 before settling around $14.93. The jump came after the company announced a major battery storage agreement and investors responded with rare enthusiasm.
The catalyst: Ford Energy signed a five-year deal with EDF Power Solutions to supply up to 20 gigawatt-hours of battery energy storage capacity across the U.S. Deliveries are set to begin in 2028.
The deal is notable for how Ford plans to supply it. Instead of building new infrastructure, the company will redirect idle capacity at existing EV factories — plants that weren’t running full tilt — toward producing battery storage systems.
It’s a pragmatic use of underutilized assets. And analysts think the timing is good given the surge in demand from AI data centers, which need large-scale power storage to keep operations running.
The Numbers Behind the Deal
Analysts estimate the battery storage market Ford is entering could be worth around $10 billion. If Ford Energy scales to the full 20 GWh capacity outlined in the EDF agreement, some models suggest it could add roughly $0.10 to Ford’s earnings per share.
That’s not transformative on its own, but it opens a door. Analysts are watching for additional customer announcements that could follow the EDF deal.
The stock also got a separate boost from a $1.3 billion noncash tariff benefit tied to a recent Supreme Court ruling. That’s not cash in hand, but it improves Ford’s reported financials and contributed to the positive sentiment around the name Thursday.
There were also reports that Ford may be exploring new defense contracts, though nothing has been confirmed. Traders appeared to price in some optimism on that front as well.
What the Analysts Are Saying
Morgan Stanley reiterated its Equalweight rating on Ford after the news, holding its price target at $14.00. That’s actually below where the stock closed Thursday — a sign that not everyone on the Street thinks the pop is fully justified.
Ford’s fundamentals present a mixed picture. The company reported a negative EPS of -$1.56 over the last twelve months. Its Piotroski F-Score sits at 3 out of 10, which flags some financial stress. The price-to-sales ratio is just 0.3, which looks cheap relative to revenue of $189.86 billion.
The stock has returned roughly 37% over the past year and currently offers a dividend yield of 4.39%.
Ford also issued $1 billion in notes due 2036 recently, and held its annual shareholder meeting where all directors were re-elected and executive compensation was approved. On the leadership side, CMO Lisa Materazzo is departing June 1, with Dean Stoneley stepping in as interim.
At Thursday’s close, Ford’s market cap stood at approximately $59.25 billion.
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