Shares of the Ford Motor Company (NYSE:F) are up more than 10% this week, after investors embraced the news of a new subsidiary.
What Happened? Ford Energy will be a subsidiary focused on large-scale battery storage systems for utilities, industrial customers, and AI-powered data centers.
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The rally accelerated after Morgan Stanley valued the division at $10 billion, arguing that Ford Energy could generate approximately $588 million in annual EBIT at scale.
Ford is investing approximately $2 billion into the new business, which will repurpose battery manufacturing capacity in Glendale, Kentucky, to produce utility-grade battery energy storage systems. The company plans to deploy at least 20 gigawatt-hours of annual capacity, with first deliveries expected in late 2027.
