Ford Shares Hit 40% May Rally on $10B Energy Storage Opportunity
F•Ford shares surged 40% in May to their highest level since April 2022, driven by investor optimism that its Ford Energy battery storage unit could be worth $10 billion. The rally included eight straight up sessions, covered 22.3 million shares worth $369 million and lifted its forward P/E to 9.7x.
1. Stock Performance Surge
Shares of Ford surged over 40% in May to reach their highest closing levels since April 2022, recording an eight-session winning streak that repositions the automaker as an AI-adjacent play.
2. Ford Energy Opportunity
Investors are eyeing Ford Energy’s battery storage systems, which Morgan Stanley values at $10 billion, as potential contracts with utilities, data centers and industrial firms accelerate due to rising AI power demands.
3. Valuation and Short Covering
The stock’s forward price-to-earnings multiple climbed to 9.7x, remaining below major indices averages, while 22.3 million shares were covered in 30 days, triggering $369 million in short-seller mark-to-market losses.
4. Profitability Outlook
Despite the surge, analysts warn Ford may not generate meaningful battery storage profits until 2028, suggesting current gains reflect expectations rather than realized earnings.
