What specific reason did Morgan Stanley give for its bullish outlook on Ford's energy storage business, and what valuation did it assign to Ford Energy?

Morgan Stanley analyst Andrew Percoco stated there is a 'fairly high likelihood that Ford signs an Energy Storage System supply agreement with large commercial customers, and potentially hyperscalers, over the next few months,' citing Ford’s deal with CATL as an 'underappreciated strategic competitive advantage.' He estimated that Ford Energy could be worth $10 billion and sees potential for its valuation to approach that of Tesla’s energy business as Ford executes capacity expansion and builds a firm order backlog.

How is Ford physically building out its energy storage business, and what financial and strategic goals does it tie to this initiative?

Ford is investing $1.5 billion this year to enter the energy storage business, converting a Kentucky factory from vehicle batteries into one that builds large storage cells for data centers and utilities, and dedicating part of a new Michigan battery plant—opening this year—to smaller storage cells for the consumer market. CFO Sherry House called it a 'high return growth opportunity,' and CEO Jim Farley identified it as a 'key element' to achieving an 8% EBIT margin by 2029 (up from 3.6% in 2023), noting strong inbound interest from utilities and other customers due to Ford’s technology, financial advantages, and existing relationships.