Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeEconomyAutosAfter Ford soars 44% on AI fever, traders want proof it's realTwo months after Ford Motor Co. became the latest old-economy manufacturer to be swept up in the artificial-intelligence rally, investors are looking for proof the enthusiasm was justified.Author of the article:Last updated 0 minutes ago You can save this article by registering for free here. Or sign-in if you have an account.A logo of the U.S. Ford Motor Company on a pick-up truck is pictured during the 14th edition of Venezuela's largest automotive exhibition, "AutoFest 2026," at the Ciudad Tamanaco Shopping Center in Caracas on April 26, 2026. (Photo by Juan BARRETO / AFP via Getty Images) Photo by Juan BARRETO/AFP via Getty ImagesTwo months after Ford Motor Co. became the latest old-economy manufacturer to be swept up in the artificial-intelligence rally, investors are looking for proof the enthusiasm was justified.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorShares of the Michigan-based carmaker surged 44 per cent in May as investors bet its battery-storage business would benefit from soaring power demand for AI data centres. As the company prepares to report earnings after the bell Tuesday, they’ll be looking for updates on partnerships that confirm these expectations.While excitement has cooled since Ford’s best month since the financial crisis, the stock remains above its pre-rally levels. That’s despite analysts warning that energy storage is still years away from turning a profit.SUBSCRIBER EXCLUSIVE: FP West: Energy Insider brings you behind the oilpatch’s closed doors with exclusive insights from insiders every Wednesday morning.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of FP West: Energy Insider will soon be in your inbox.We encountered an issue signing you up. Please try again“The market’s going to react to them actually building a backlog, which gives visibility to investors that this earnings opportunity is somewhat secure,” Morgan Stanley analyst Andrew Percoco said. “The market’s not going to wait until you actually start to see the numbers come through in 2028.”Sky-high valuations for megatech and companies that build semiconductors and other hardware have led investors to pursue more tangential inroads in the AI revolution. Industrial and auto stocks have been particular beneficiaries. The market has piled into bulldozer-maker Caterpillar Inc. and vehicle suppliers BorgWarner Inc. and Aptiv PLC, before turning to Ford, for their potential to aid in the autonomy buildout.During the company’s annual meeting in May, chief executive Jim Farley called energy storage a “high growth, high margin, anti-cyclical market development for Ford.” Estimates for Ford’s 2026 adjusted profits are up about 11 per cent over the last three months, according to data compiled by Bloomberg.It’s smart for Ford to try and compete in energy storage, and power systems are one of the biggest backlogs in AI, said Brian Mulberry, portfolio manager and chief market strategist at Zacks Investment Management, which owns Ford stock.“It will highlight and elevate their brand as trying to be more modern and more in the moment,” Mulberry said. “I think it could be really additive to them.”Percoco, who covered clean technology before autos, sparked the initial advance. He wrote that Ford’s energy storage business and partnership with Chinese battery-leader Contemporary Amperex Technology Co., or CATL, could be worth US$10 billion and lead to agreements with hyperscalers.He still sees it as a great opportunity. Margins for electric vehicle maker Tesla Inc.’s energy unit are historically nearly double of those for the core car business and Percoco expects the same to be true for Ford as it scales its business. Tesla has offered energy storage for years, and the segment comprised more than 13 per cent of its revenue in 2025.He sees Ford’s energy storage business ramping in 2027 and hitting its stride beginning in late 2028. In the meantime, management will have to provide incremental updates on partnerships to sustain investor excitement, said Percoco, who has an equal-weight rating on the stock.In a sign that optimism over the business’s prospects remains strong, Jefferies analyst Philippe Houchois this week upgraded Ford’s stock to buy from hold, citing energy storage among the reasons.Bank of America analyst Alexander Perry said in a July 15 note that investors will be focused on potential energy customer announcements. BNP Paribas analyst James Picariello said it will take several years, even beyond 2028, for Ford to scale up energy storage partnerships to meet its intended capacity.So far, Ford Energy has struck a deal with EDF power solutions North America.When General Motors Co. announced its own foray into the energy storage space, it didn’t rouse the market. GM’s investment in startup Peak Energy Technologies Inc. is relatively small, needs time to scale and lacks the name brand of Ford-partner CATL.Ford shares have surged 20 per cent since the company last reported earnings in April. Over the same period, GM stock gained 14 per cent while Stellantis NV’s United States-listed shares sunk 26 per cent.But with the exception of its recent outperformance, Ford has trailed GM when it comes to its core business. GM shares have jumped almost 60 per cent over the past five years compared with a 6.5 per cent advance for Ford.GM’s second-quarter results beat analyst estimates and the company boosted its full-year profit outlook, sending the stock nearly nine per cent higher last week.Ford may need to take more of a gamble to boost its brand and lift its stock price while its neighbour and competitor can rely on its core business, according to BNP Paribas’s Picariello, who has a hold-equivalent rating on Ford and buy-equivalent rating on GM.“The numbers don’t lie. They’re not executing as well as GM. There are more gaps to fill for Ford, no doubt,” Picariello said.—With assistance from Keith Naughton. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.