Ford Motor Company has seen its stock price decline, erasing the 45% gains recorded earlier this year. Shares fell below $11.99 for the first time since May, as market optimism regarding the company's potential to profit from the artificial intelligence boom through its energy storage business has faded.
Analysts note that the energy storage division is not expected to generate returns until 2027 or 2028. Investors who previously drove the stock up in May, following a Morgan Stanley report suggesting potential partnerships with cloud service providers, are now demanding concrete evidence of signed customer orders to justify further growth.
Macroeconomic pressures, including high interest rates, rising fuel costs, and increased competition from overseas manufacturers, continue to weigh on the automotive sector. Year-to-date, Ford shares have fallen 8.1%, while General Motors shares have declined 5.3%, trailing the S&P 500 index, which rose 12% in the same period.
CEO Jim Farley reported that F-150 pickup truck production in the third quarter was impacted by supplier issues. Additionally, the company faces political scrutiny regarding its energy storage technology, which utilizes licensed intellectual property from CATL, as well as concerns over its joint venture in Spain.
