Ford Motor Company

🇺🇸New York Stock Exchange
Back to all articles
Ford Motor Company stock analysis F overview
Bullish +65

Ford has a new battery business to ride the AI wave. Here’s where Cramer stands on the stock

📈 Jim Cramer praises Ford's new battery storage business, Ford Energy, as a credible way to capitalize on the AI infrastructure boom and renewable energy needs.

💰 Ford shares recently surged above $17 following the subsidiary's launch but have since retreated to around $14 as of Wednesday's close.

🗓️ Cramer advises investors to buy Ford now at lower prices rather than during the initial multi-year high spike last month.

🔋 Ford Energy plans to produce at least 20 gigawatts of battery storage capacity annually for data centers and the electric grid.

🚀 First customer deliveries for Ford Energy are expected in late 2027, marking a long-term strategic shift for the automaker.

📉 Cramer notes that Ford Energy will not meaningfully impact earnings for several years as current profits rely on vehicle sales.

⚖️ The analyst suggests buying Ford if investors believe oil prices and interest rates are coming down in the future.

🤝 Cramer explicitly gives his 'blessing' to buy Ford Motor stock at the current price of approximately $13.96.

Bullish Signals
  • Cramer views Ford Energy as a credible way for the automaker to benefit from the rapid buildout of AI data centers and renewable energy storage needs.
  • The company's new battery business is seen as making Ford a more attractive long-term investment despite current earnings reliance on vehicle sales.
  • Cramer explicitly recommends buying Ford Motor stock at the current price of around $13.96 after the stock retreated from its recent highs.
  • Ford Energy plans to produce 20 gigawatts of battery storage capacity annually, positioning the company as a major player in the energy sector.
  • The initiative is supported by growing demand for backup batteries in data centers that cannot afford to go offline.
Risk Factors
  • Cramer cautions that Ford Energy will not meaningfully impact earnings for several years, limiting its immediate financial contribution.
  • Current revenues and profits will continue to come primarily from selling trucks and cars while the energy business ramps up.
  • The stock has retreated from a multi-year high above $17 back down to around $14 since the initial announcement.
  • Ford Energy is described as a long-term opportunity rather than an immediate earnings driver, implying delayed financial returns.
Full Analysis
Jim Cramer of CNBC's 'Mad Money' highlighted Ford Motor Company's new battery storage subsidiary, Ford Energy, as a strategic move to capitalize on the growing demand for AI infrastructure and renewable energy grid stability. Cramer expressed strong support for the initiative, noting that while it may not immediately impact earnings, it significantly enhances Ford's long-term investment appeal by positioning the automaker in a high-growth sector. Following the formal launch of Ford Energy last month, investor sentiment initially surged, pushing Ford shares to a multi-year high above $17. However, the stock has since retreated to approximately $14 as of Wednesday's close. Cramer advised against buying during the initial spike but now recommends purchasing at the current lower price point, specifically for investors who anticipate a decline in oil prices and interest rates. Cramer emphasized that Ford Energy is a long-term opportunity rather than an immediate profit driver, with revenues expected to come primarily from vehicle sales in the near term. The subsidiary plans to produce at least 20 gigawatts of battery storage capacity annually, with first customer deliveries scheduled for late 2027 to support data centers and electric grids that require reliable backup power. Despite the long timeline for Ford Energy to become a meaningful earnings contributor, Cramer believes the diversification into energy storage makes Ford a more attractive investment prospect. He explicitly gave his 'blessing' to buy Ford Motor stock at current levels, citing the company's credible entry into the battery space as a key bullish factor for patient investors.