Ford Motor Company shares experienced a significant rally on Friday, closing up 9.22% at $14.93, near the session high of $14.95. This surge pushed the stock's weekly gain to 11.4%, from a close of $13.40 the previous Friday, reigniting discussions about Ford's growth potential in the market.
The rally was driven by renewed investor attention on Ford Energy and its battery-storage business, following the announcement of a five-year supply agreement with EDF. Under the deal, EDF will receive up to 4 gigawatt-hours per year of Ford's DC Block battery energy storage systems (BESS), with total deliveries potentially reaching 20 GWh starting in 2028. These grid-scale batteries are designed to store and return power, catering to utilities, grid operators, and data centers.
Lisa Drake, president of Ford Energy, highlighted that the partnership underscores demand for a supplier with industrial-scale manufacturing discipline and lifecycle accountability. Tristan Grimbert, CEO of EDF power solutions North America, noted that the agreement provides supply visibility and product confidence. This deal has prompted some analysts to view Ford more as an AI infrastructure play than a traditional automaker.
Ford's push into battery storage aligns with broader industry trends. Reuters reported that both Ford and General Motors are reworking their battery lines amid slowing EV sales, while Tesla's energy-storage arm has become one of its fastest-growing segments. The U.S. battery storage sector faces grid connection delays and reliance on China-linked supply chains, but annual deployments could reach 110 GWh by 2030, according to the Solar Energy Industries Association.
Ford's fundamentals also provided support. In late April, the company raised its 2026 adjusted EBIT target to a range of $8.5 billion to $10.5 billion, up from $8 billion to $10 billion. For the first quarter, Ford reported revenue of $43.3 billion and adjusted earnings per share of 66 cents. EBIT, or earnings before interest and taxes, offers a clear view of operating profit.
However, several risks persist. On Friday, a U.S. appeals court reinstated $82.2 million of a verdict against Ford in a trade secrets case brought by Versata Software. Additionally, Ford continues to grapple with elevated aluminum supply costs stemming from fires at Novelis plants. JPMorgan analyst Ryan Brinkman noted last month that Ford may be having a more difficult time recovering from this issue than previously anticipated.
The broader market context was supportive, with the S&P 500 rising 0.4% on Friday and notching its eighth consecutive weekly gain. The Dow Jones Industrial Average gained 0.6%, reaching an intraday record, while the Nasdaq Composite added 0.2%. U.S. equity markets will be closed on Monday, May 25, for Memorial Day, meaning Friday's closing price will be held over a three-day stretch.
Looking ahead, markets reopen on Tuesday, with a light start before a packed macro schedule. The next major catalyst is the release of the personal consumption expenditures (PCE) price index on May 28, which is the Federal Reserve's preferred inflation gauge. For Ford, the challenge will be to convert its battery-storage orders into tangible revenue and margins, proving that its new valuation story has staying power beyond the initial rally.
