Ford Motor Company (NYSE: F) shares closed at $14.93 on Friday, marking a 52-week high and a gain of 9.22% for the session. The rally pushed the automaker's year-to-date return to 16.49%, outpacing both General Motors (off 2.88%) and Tesla (down 5.27%) for the year, according to FinanceCharts. Markets are closed Monday for Memorial Day, with trading resuming Tuesday.
The surge was driven by investor enthusiasm for Ford Energy, the company's new battery storage unit targeting data centers, utilities, and industrial clients. The unit signed a five-year framework agreement with EDF Power Solutions North America, under which EDF may purchase up to 4 gigawatt hours (GWh) of Ford battery storage systems annually, for a total of up to 20 GWh. Deliveries are expected to begin in 2028.
Ford Energy President Lisa Drake said the deal highlights demand for a supplier with 'industrial-scale manufacturing discipline,' emphasizing that Ford is 'not simply delivering hardware.' Tristan Grimbert, CEO of EDF Power Solutions North America, noted that supply reliability and product quality are 'paramount.'
The battery storage business has been a key catalyst for Ford stock. Morgan Stanley analysts pointed to Ford's partnership with China's CATL on battery technology as a competitive advantage. Ford is planning to invest $2 billion in the storage unit, targeting first customer deliveries by late 2027 and aiming to deploy at least 20 GWh annually.
Ford's rally has been supported by improved financial performance. The company raised its 2026 adjusted EBIT target to $8.5 billion–$10.5 billion, up from $8 billion–$10 billion, partly due to a potential tariff refund. First-quarter adjusted earnings of 66 cents per share easily beat analyst estimates of 19 cents.
However, challenges remain. Ford faces $1 billion in net tariff costs this year and ongoing aluminum supply disruptions due to fires at Novelis, which have impacted F-150 production. JPMorgan analyst Ryan Brinkman warned that Ford could have a 'more difficult time' recovering from the Novelis fire than expected.
Internationally, Ford plans to launch seven new European models by 2029 as part of a strategy to regain market share and defend its position in commercial vehicles. 'We need to stand out in a crowd,' said Jim Baumbick, Ford's European chief.
Ford also saw improvement in supplier relationships. Plante Moran's annual survey showed that Ford and Stellantis made the biggest gains in supplier satisfaction, though they still have room to improve. Angela Johnson, principal at Plante Moran, said both companies need to prove they can sustain this progress.
Looking ahead, investors will watch whether Ford can hold above the $14 level after the holiday. A sustained move above that mark could signal continued confidence in the battery storage story, while a drop below could indicate that last week's rally was a short-term trade on unproven new business. The stock faces additional legal risk after a U.S. appeals court reinstated an $82.2 million trade secrets judgment against the company.
