Ford Energy Secures Major Deal Amid Declining Vehicle Sales
Ford Motor Company (NYSE: F) announced a significant five-year contract with EDF Power Solutions to provide up to 4 gigawatt-hours (GWh) of annual energy storage capacity starting in 2028. This deal represents 20% of Ford Energy’s planned capacity of 20 GWh annually, sparking investor interest and a 55% rise in Ford’s stock price over the past year, reaching its highest levels in four years. Morgan Stanley recently valued Ford Energy at $10 billion, contributing to the stock’s surge.
Despite this promising development in its energy storage business, Ford’s core vehicle sales fell 14% year-over-year in April, amidst challenges like inflated gas prices and a production disruption due to an ongoing aluminum shortage affecting its key F-150 model. Investor sentiment remains cautious, with only 25% of 24 Wall Street analysts maintaining a buy rating on Ford as potential economic pressures loom ahead.
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