Ford (F) stock surged on Wednesday after Morgan Stanley said Ford’s new energy business could be a winner for the automaker, citing a significant competitive advantage in battery tech.
Morgan Stanley’s Andrew Percoco wrote in a note published late Tuesday that Ford’s $2 billion battery storage bet, announced late last year alongside a $20 billion writedown of its electric vehicle assets, could put a dent in those big losses. The main thrust comes from Ford’s deal with Chinese battery maker Contemporary Amperex Technology (CATL) (3750.HK).
“We believe Ford’s relationship with CATL is an under-appreciated strategic competitive advantage for its Energy Storage business [ESS],” the analysts wrote, calling Ford one of the few “semi-vertically integrated domestic ESS suppliers” with access to best-in-class lithium iron phosphate (LFP) technology.
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