<p><strong>Ford Motor Co </strong>(NYSE:F) shares are skyrocketing Wednesday. Morgan Stanley released new research arguing that the company's energy storage ambitions are far more valuable than the market currently recognizes, putting the stock on pace for its best session since March 2020. Here’s what you should know.</p>



<ul>
<li>Ford Motor stock is among today’s top performers. What’s behind F gains?</li>
</ul>



<h2>What’s Pushing Ford Higher?</h2>



<p>Morgan Stanley analyst <strong>Andrew Percoco</strong> reiterated an Equal‑weight rating and kept a $14 price target on Ford in a new note to clients on Wednesday. The analyst also suggested that Ford's Energy division could eventually be worth about $10 billion, which sent shares surging Wednesday morning with momentum continuing into the afternoon session.</p>



<p>Percoco highlighted Ford's partnership with CATL as a major advantage for the company's Energy Storage business. He believes this relationship positions Ford as a key supplier of compliant energy storage systems for utilities and data centers in the United States.</p>



<p>The analyst also sees a strong chance that Ford will secure supply agreements with large commercial customers, including hyperscalers, in the coming months.</p>



<h2>Why The CATL Licensing Deal Matters</h2>



<p>Ford entered the energy storage market late last year with a $2 billion investment, a move that initially drew skepticism because it was announced alongside a roughly $20 billion write‑down in the EV division. Morgan Stanley argues that the market overlooked the detail that Ford is licensing technology from CATL, the global leader in energy storage manufacturing.</p>



<p>By using CATL's top‑tier LFP technology, Ford becomes one of the few domestic suppliers with a semi‑vertically integrated structure. The analysts noted that this setup gives Ford a strategic advantage in a regulatory environment that is becoming more complex, especially with tariffs and rules tied to foreign entities. The licensing model allows Ford to scale in a high‑growth area while maintaining operational control and staying aligned with regulatory requirements.</p>



<h2>Unit Economics And Profitability Outlook</h2>



<p>Morgan Stanley modeled the potential economics of Ford's Energy business and estimated that the division could generate roughly a 25% gross margin at scale, helped by the $45 per kWh manufacturing tax credit. This assumes modest pricing pressure through the decade and a cost structure of $215 to $230 COGS per kWh. The analyst expects Ford to maintain strong supply chain positioning due to its CATL relationship.</p>



<p>Based on these assumptions, the firm believes Ford's energy business could turn profitable on an EBIT basis by 2028. That would be a meaningful shift given that the Model e division is expected to post a $4.25 billion EBIT loss in 2026.</p>



<p>Morgan Stanley estimated that Ford Energy could generate $500 million to $600 million of run‑rate EBIT at 20 GWh of production. The analysts see room for even higher capacity depending on customer demand.</p>



<h2>Morgan Stanley Sees Expanding Market</h2>



<p>Morgan Stanley expects strong growth in energy storage demand over the next five years, driven by three major forces. The first would be that AI inference workloads that create volatile and peak‑heavy power demand. The second is that energy storage is being used to ease traditional power capacity constraints, and the last being rising renewable penetration that requires storage to balance intermittency.</p>



<p>The firm forecasts a 38% CAGR for US energy storage deployments, reaching 279 GWh by 2030. Utility‑scale storage is expected to grow at a 14% CAGR to 110 GWh by 2030, while data centers could support another 169 GWh of annual deployments.</p>



<p>The analysts wrote that the United States has reached an inflection point in power demand. After nearly two decades of flat growth at roughly a 0.4% CAGR, they expect demand to accelerate at about a 2.6% CAGR through 2035 due to data center expansion, onshoring of manufacturing and electrification.</p>



<p>Morgan Stanley estimates that Ford Energy could be worth $10 billion once it reaches 20 GWh of capacity, applying a 17.5x multiple to roughly $588 million of EBIT.</p>



<h2>F Shares Sprint Higher Wednesday</h2>



<p><strong>F Price Action:</strong> Ford shares were up 13.68% at $13.64 at the time of publication on Wednesday, according to Benzinga Pro.</p>



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<p><em>Image: Shutterstock</em></p>

FRDU

<p>Ford Motor Co (NYSE:F) shares surged 13.68% on optimism surrounding its energy storage business, driven by a Morgan Stanley report valuing the division at $10 billion. Analyst Andrew Percoco highlighted Ford's partnership with CATL, enhancing its position in the energy market. The report predicts a 25% gross margin for Ford's Energy division by 2028, with potential EBIT of $500-$600 million at 20 GWh production. Morgan Stanley forecasts a 38% CAGR for US energy storage, indicating strong future demand.</p>

- Morgan Stanley's analysis suggests that Ford Motor's energy storage division could significantly enhance its market value, driving a surge in shares.  
- The analyst estimates Ford's Energy division could be worth approximately $10 billion, buoyed by its partnership with CATL, which enables efficient compliance with regulatory requirements.  
- With projections for strong growth in energy storage demand, Ford's Energy business could become profitable by 2028, contributing significantly to its overall financial performance.

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Ford Motor

FORD MOTOR CO 6.500% NOTES DUE 15/08/2062 USD25

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FORD MOTOR CO 6.20% NOTES DUE 01/06/2059 USD25

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Ford Stock Soars On Energy Business Optimism