Ford Motor Company (NYSE: F) shares surged 13.2% on Wednesday and gained an additional 7.5% by 12:10 p.m. ET on Thursday, driven by the launch of its new subsidiary, Ford Energy. Established on Monday, Ford Energy aims to reverse losses from Ford’s Model-e electric vehicles division by producing energy storage batteries at a facility in Kentucky, set to begin operations later this year.
Expectations are high, with Morgan Stanley analyst Andrew Percoco predicting that Ford Energy could generate a $346 million operating profit by 2028, with a potential gross profit margin of 25%. The subsidiary is projected to produce 20 gigawatt-hours of batteries annually, enough to power 17.5 million homes for a year, primarily targeting utility customers and AI data centers. Ford’s market capitalization may increase by nearly 20%, approaching a $10 billion valuation in the energy sector.
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