Ford’s stock is surging— and it’s got nothing to do with its car business

Ford Motor’s stock price has surged to its highest level in nearly three years, and the reason has little to do with cars or trucks.

- Ryan Felton

The automaker is increasingly being viewed as an energy-storage or opportunity to profit from electricity sales.

(REUTERS)

Over the past two weeks, Ford stock has risen 28% after the company announced a new energy-storage subsidiary, Ford Energy.

That division, which launched with a $2 billion investment, seeks to turn batteries once destined for electric vehicles into stationary energy-storage systems for artificial-intelligence data centers, power utilities and large industrial customers. The move puts Ford in competition with other major battery-making companies such as Tesla and LG Energy Solution.

For Ford’s most bullish investors, the division represents an opportunity to capitalize on the AI boom and soaring energy demands in the U.S., right as the auto industry slogs through an EV downturn and suddenly has far less use for batteries than it once expected.

“There’s been increased attention on their ability to utilize some of the energy capabilities that they have,” said Citi auto analyst Michael Ward.