Key Points
Ford Motor Company (NYSE: F) has seen its stock decline nearly 20% from a peak in late May, attributed to a weak sales report, uncertainty around tariffs, and a recent recall. Despite these challenges, Ford is launching Ford Energy, aimed at transitioning into battery energy storage systems (BESS) for the U.S. market. The company plans to deploy at least 20 gigawatts annually starting in late 2027, with the BESS market expected to exceed $160 billion annually by 2034, growing at a nearly 19% CAGR.
However, Ford’s electric vehicle division is projected to incur approximately $4 billion in losses this year amid rising competition and economic headwinds. The automaker’s forward P/E ratio is currently below 10, presenting a relatively inexpensive investment, complemented by a $0.60 annual dividend yielding 4.25%. The success of Ford Energy will be crucial in offsetting these losses, though significant revenue contributions are not anticipated for at least another year.
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