Ford Motor Co. shares closed Friday at $17.44, up 4.74%, after hitting an intraday high of $17.78. The stock has rallied approximately 16.8% over the past four trading sessions since May 22, when it ended at $14.93. Trading volume on Friday reached 154.23 million shares, the highest during this surge.
The recent rally is not solely about Ford's traditional automotive business, such as F-150 sales or EV profitability. Instead, investors are increasingly focusing on Ford's potential as an energy storage play amid the AI power boom. Reports that data centers are seeking backup systems to manage AI-driven grid strain have shifted attention to Ford Energy, the company's storage unit.
Ford Energy and EDF Power Solutions North America recently finalized an agreement allowing EDF to purchase up to 4 GWh of Ford DC Block battery energy storage systems annually, with a potential total of 20 GWh over five years. These battery energy storage systems (BESS) are large-scale batteries designed to store electricity for later use. Shipments are scheduled to begin in 2028. Lisa Drake, president of Ford Energy, emphasized that the company is not merely supplying hardware. Tristan Grimbert, CEO of EDF North America, noted that the deal provides EDF with supply visibility and product confidence.
The rally began in mid-May, with shares surging 13% on May 13—the largest single-day gain in about six years—following a Morgan Stanley report highlighting Ford's energy-storage business and a $2 billion investment plan targeting at least 20 GWh of annual deployment. Analysts also pointed to Ford's partnership with Chinese battery giant CATL, describing it as an underappreciated strategic advantage.
On Friday, Ford outperformed its peers, with General Motors dropping 1.32% and Tesla shedding 1.43%. The S&P 500 closed up 0.2%, marking its ninth consecutive weekly gain, the longest such streak since 2023. The Nasdaq rose 2.4% for the week, driven by continued inflows into AI-related names.
Ford received several analyst upgrades late in the week. BofA Securities raised its price target to $20 from $17, while Deutsche Bank increased its target to $15 from $12, though it maintained a Hold rating on the stock.
Despite the optimism, risks remain. Ford is still in the early stages of its energy business and remains heavily dependent on its automotive operations. Deutsche Bank acknowledged the battery-storage data-center deals as an intriguing growth angle but cautioned that Ford's energy unit is still nascent and that the company is defined by its auto business.
Looking ahead, traders are watching for further customer deals, analyst changes, and evidence that Ford Energy can transition from a valuation story to a source of steady earnings. The narrative around Ford has shifted: investors are no longer solely focused on truck margins or EV losses. The key question now is whether Ford can capitalize on AI-driven power demand to support a higher share price.
