Why Ford Stock Keeps Going Up
Key Points
Morgan Stanley predicts big things for Ford's new Energy subsidiary as it begins producing utility-scale batteries.
AI data centers and electric utilities will become key customers for Ford.
- 10 stocks we like better than Ford Motor Company ›
Ford Motor Company (NYSE: F) stock is off to the races.
Shares of the Detroit automaker soared 13.2% Wednesday. They're up another 7.5% through 12:10 p.m. ET today -- and Ford Energy is the reason.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
What is Ford up to in Energy?
Ford announced the creation of its new Ford Energy subsidiary Monday. One day later, the move won plaudits from Morgan Stanley analyst Andrew Percoco, who made some bold predictions:
Combined with cutbacks at Ford's Model-e electric vehicles unit, the analyst says Ford Energy could reverse losses at the EV division. Beginning production a few months from now at its factory in Kentucky, Ford Energy will lose money in 2027, then turn profitable in 2028, generating perhaps 25% gross profit margins and a $346 million operating profit in that year. Additional profit might come from investment tax credits as the company's batteries will be 55% U.S.-made under federal guidelines.
Upon reaching full capacity, Ford plans to produce 20 gigawatt-hours of energy storage batteries annually, enough to power 17.5 million homes for a year, reports the Detroit Free Press.
Utility customers and artificial intelligence data centers would be the primary buyers of Ford's giant batteries, turning Ford into a de facto AI stock in the minds of many investors.
What's next for Ford stock?
All this lies in the future for Ford, of course. But here's the part that might interest investors most of all:
If everything goes as planned, Percoco believes Ford can build a $10 billion business out of Energy, growing the company's current $54 billion market cap by nearly 20%. While there's no guarantee this will happen, with Ford stock trading below 6x free cash flow and paying a 4.4% dividend yield today, it's a good bet that Ford stock is heading higher.
Should you buy stock in Ford Motor Company right now?
Before you buy stock in Ford Motor Company, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ford Motor Company wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $472,205!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,384,459!*
Now, it’s worth noting Stock Advisor’s total average return is 999% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 14, 2026.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
