Ford Motor Co. shares surged 13% on May 13, 2026, marking their biggest single-day gain since March 2020, after Morgan Stanley highlighted the company’s energy storage prospects and potential hyperscaler contracts [1]. The rally continued the next day, with shares rising more than 6%, bringing the total increase over the two days to 20% [2].
The jump came after Ford’s May 12 announcement of Ford Energy, a newly created, wholly owned subsidiary focused on battery energy storage systems assembled in the U.S. for utilities, data centers, and large industrial customers [2]. Morgan Stanley analysts believe Ford Energy represents an underappreciated growth area that could drive profitability for the automaker’s electric vehicle Model e division [2].
The analysts, led by Andrew Percoco, said, "Energy storage is a new business, but they have the right technology. ... we see this as an opportunity for Ford to deploy capital into a strategic growth area with a structure that preserves operational control and regulatory alignment" [2]. Ford’s technology includes licensed battery tech from Chinese company Contemporary Amperex Technology Co. (CATL), a partner in a $3.5 billion EV battery plant project in Michigan announced around 2023 [2].
Morgan Stanley also pointed to potentially imminent deals with hyperscalers that could propel Ford Energy’s growth in the coming months [1, 2]. The energy storage initiative gains additional momentum amid warming U.S.-China relations following a recent summit between Presidents Donald Trump and Xi Jinping, which may ease technology and trade cooperation [2].
Ford Energy’s U.S. assembly strategy aims to serve a growing market for large-scale, clean energy storage, a key component for grid reliability and data center operations. The subsidiary’s offerings position Ford to leverage its EV battery expertise in new sectors beyond vehicle manufacturing, closer to utility and industrial customers.
The next major development investors and industry watchers are looking for is the formal announcement of hyperscaler contracts, expected within months, which Morgan Stanley identified as a potential catalyst for further share price gains [1, 2].
