Ford Shares Surge 15% on Energy Storage Note

Ford Motor Co. shares surged as much as 15 percent Wednesday, marking the automaker's largest single-day gain since March 2020 and making it the top performer in the S&P 500, after a Morgan Stanley research note highlighted the potential of its new energy storage business.

The stock climbed to around $13.56 by mid-afternoon in New York trading, turning positive for the year to date. The rally followed a note published late Tuesday by Morgan Stanley analyst Andrew Percoco, who described Ford's energy storage unit, dubbed Ford Energy, as an underappreciated driver toward profitability for its electric vehicle division, Model e, which reported losses of $4.8 billion last year.

Ford Energy aims to supply U.S.-assembled battery energy storage systems to utilities, data centers, large commercial and industrial customers. These systems use lithium-ion batteries, similar to those in electric vehicles, to store renewable energy from sources like solar and wind, stabilizing power supplies. The company plans to deploy at least 20 gigawatt-hours of storage annually, with first deliveries expected in late 2027. For comparison, Tesla deployed about 45 gigawatt-hours over the past 12 months.