Ford Motor Company (F) saw its stock reach a nearly three-year high on Friday, closing at $14.93 after a sharp 9% rally. The move came as investors focused on the automaker's new energy storage business, Ford Energy, and its recent agreement with French utility EDF for up to 20 gigawatt-hours (GWh) of battery storage systems over five years.
The rally followed a busy week for Ford, which included the announcement of a $2 billion investment in its storage unit and plans for first deliveries by late 2027. EDF's deliveries are scheduled to begin in 2028. The deal with EDF was seen as a validation of Ford's strategy to diversify beyond traditional auto manufacturing and into the growing energy storage market.
Ford stock has now risen about 24% in May, making it one of the better performers in the S&P 500. The gains have been driven by a combination of factors, including the energy storage news, a positive analyst note from Morgan Stanley highlighting Ford's battery technology partnership with China's CATL, and a broader market shift toward value stocks.
Lisa Drake, head of Ford Energy, said the EDF deal "validates the market's need" for a large-scale manufacturing supplier. Tristan Grimbert, CEO of EDF Power Solutions North America, emphasized that "supply chain reliability and product quality are paramount."
The energy storage push positions Ford to compete with Tesla (TSLA) in the battery storage market. Tesla has been a pioneer in the space, deploying about 45 GWh of storage over the past 12 months. Ford is aiming for at least 20 GWh annually through its new unit.
Despite the excitement around energy storage, Ford continues to face challenges in its core auto business. The company reported first-quarter revenue of $43.3 billion and net income of $2.5 billion, with adjusted EBIT of $3.5 billion. Ford raised its full-year adjusted EBIT outlook to $8.5 billion to $10.5 billion, though the quarter benefited from a $1.3 billion one-time tariff benefit.
Risks remain. EDF deliveries won't start until 2028, and Ford's push into storage comes after a $19.5 billion writedown on electric vehicle investments and a shift in production plans at its Kentucky plant. If battery costs rise or demand from data centers eases, investors could refocus on Ford's legacy concerns: truck profits, EV losses, and tariff exposure.
Tuesday's trading will be a key test for Ford stock. A flat open would keep shares near levels last seen in 2022, while any pullback could signal that the market is waiting for more evidence before fully pricing in the energy storage story. As Ford continues to tell investors to look beyond the next launch, the focus now is squarely on batteries—both for cars and for the broader power market.
