Ford, a traditional American automaker founded 122 yearsbecame the latest company in the so-called “old economy” to be driven by the advancement of artificial intelligence (AI).
The company’s shares soared 21% in just two days last week, following the announcement of the launch of a new energy storage division focused on providing large batteries for AI hyperscalers and data centers.
On the Monday following the announcement, the company reported having closed its first contract: a five years with the EDF to provide up to 20 GWh of energy.
The movement aroused enthusiasm on Wall Street at the possibility of a traditional manufacturer, historically associated with slow growth and reduced marginsstart to work in a segment linked to AI characterized by strong expansion and higher profitability.
Ford enters expanding market
- Second estimates from Bloomberg NEF cited in the text, demand for energy storage in the United States should to bend until 2030;
- In addition to Ford, other industrial companies are recording new growth opportunities driven by the expansion of the AI ecosystem, including Caterpillar, Johnson Controls and Corning;
- Strong investor interest gained momentum following a report published on May 13 by Andrew Percocoanalyst at Morgan Stanley. In the document, he valued Ford’s new energy business at US$10 billion (R$50.2 billion) and predicted the possibility of contracts with “large commercial customers and potentially hyperscalers”;
- The next day, Ford’s CEO, Jim Farleyreinforced optimism during the company’s annual shareholders’ meeting by stating: “We have seen tremendous interest from customers”.
Ford’s entry into this segment occurred indirectly after the below-expected performance of the electric vehicle market in the United States. The automaker had signed a partnership with the Chinese battery manufacturer Contemporary Amperex Technology (CATL) to supply batteries for electric vehicles.
CATL’s technology will continue to be used in an electric pickup truck US$30 thousand (R$150.5 thousand) scheduled for next year. However, faced with weaker than expected demand for electric vehicles in the US market, Ford needed to redirect its strategy, starting to use the Chinese company’s technology also in large energy storage batteries.
It’s still not clear how the new business will evolve in the coming years. After last week’s strong rally, Ford shares gave back some of their gains.
Even so, BNP Paribas estimates that, if the investment of US$2 billion (R$10 billion) of Ford in the new segment is successful, the operation could generate a return of 22% until the end of the decade. Double-digit returns would be unusual for a traditional Detroit automaker.
Source: www.olhardigital.com.br
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