ford motor (New York Stock Exchange:F)It surprised investors with its introduction of Ford Energy earlier this month, and the stock has soared since then. The company, a traditional automaker, has curbed its plans to develop and sell electric vehicles (EVs), including taking huge write-downs on capital investments.
Now, the company plans to repurpose some of those assets, and investors are turning a huge loss into a positive. Ford’s stock has soared about 30% in the last month, and investors are eager to see whether Ford’s new $2 billion investment will be the catalyst to continue the stock’s rise.
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ford pivot
Late last year, Ford announced that it would incur approximately $19.5 billion in costs, primarily related to its electric vehicle business. Due to declining demand for EVs, the company has ended production of its high-profile all-electric F-150 Lightning. This was several years after the company had split its business into three different segments, one of which was the Ford Model e, which focused on EV production.
Investors felt that the company was struggling without a clear direction or future for its electrical division. Ford stock fell by double digits from the beginning of 2026 through the spring. But things have changed, with the stock soaring 32% since Ford Energy’s announcement.
Please do the same as Tesla
Ford may have been watching. tesla When it decided to repurpose assets and invest an additional $2 billion to set up an energy sector. Tesla’s energy storage business may seem small compared to its EV sales, but its battery storage division is doing well.
Tesla’s energy generation and storage revenue jumped 27% last year compared to 2024, to $12.7 billion. It has more than doubled since 2023. With the explosive growth of data centers, the market for battery storage is likely to expand as well.
Data centers are increasingly requiring on-site power generation, and some of these systems will require storage to ensure a reliable power supply. According to a recent Motley Fool study, major technology companies are expected to spend $4 trillion on data center investments by 2030.
Will the AI boom save Ford?
Of course, Ford isn’t just focused on new energy. Ford Pro has been very successful in commercial and business vehicle sales. Despite Ford Blue’s problems, the company raised its 2026 revenue outlook last month, thanks to iconic internal combustion engine (ICE) models such as the F-150, Bronco and Mustang, as well as hybrid vehicles.
But some analysts think Ford Energy could be the next big thing. morgan stanley According to , the new energy sector alone is estimated to be worth $10 billion. wall street journal.
Ford already has relationships with global battery manufacturers. Its battery technology will now be used not for electric vehicles but for storage to support the rapidly increasing energy demands of AI data centers and utilities.
Traditional automakers aren’t typically held in high esteem by Wall Street. Ford’s stock trades at a forward price/earnings ratio of less than 10 times. This helps explain the recent surge. The current risk to Ford stock is more likely to have to do with AI failure than the underlying business.
Ford stock looks like a buy here, given its low valuation and path to new revenue streams supported by AI. Investors should note that if the air starts to leak from the AI investment, Ford’s stock price will likely fall as well.
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Howard Smith has a position in Tesla. The Motley Fool has a position in and recommends Tesla. The Motley Fool has a disclosure policy.
