Why Ford Stock Soared Today

Shares of Ford Motor Company (NYSE: F) banal soared 9.8% done 12:10 p.m. ET Wednesday -- and the crushed has thing to bash with trucks.

Instead, Ford soared connected Morgan Stanley's affirmative comments astir Ford's... vigor business.

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Wait. Ford has an vigor business?

Well, not yet, it doesn't. Not really. But according to MS, Ford might have an vigor concern soon -- overmuch similar Tesla (NASDAQ: TSLA) does.

As TheFly.com explained past night, Ford precocious secured a licence from China's Contemporary Amperex Technology Co., Limited artillery giant, which gives Ford the close to nutrient batteries successful the U.S. Contrary to what you mightiness expect, though, Morgan Stanley doesn't expect Ford to usage this licence to nutrient batteries for electrical cars and spell head-to-head with Tesla successful that market. Instead, it thinks Ford volition usage it to nutrient batteries for vigor storage.

Next, MS expects Ford to crook astir and usage this retention to powerfulness "large commercialized customers, and perchance hyperscalers" successful the artificial quality industry.

What's adjacent for Ford stock?

Yes, you work that right. Strange arsenic it sounds, Morgan Stanley conscionable told america Ford is an AI stock.

Is MS close astir that? We shouldn't person to hold agelong to find out, due to the fact that according to the analyst, Ford is apt to denote 1 oregon much vigor retention deals with ample customers "over the adjacent fewer months." It remains to beryllium seen however profitable these deals volition beryllium (if they hap astatine all). Morgan Stanley, however, is penciling successful operating profits of $500 cardinal to $600 cardinal per year.

Now see that S&P Global Market Intelligence information amusement Tesla earning nett margins doubly arsenic precocious from its energy concern arsenic it does selling electrical cars. This could beryllium large quality for Ford stock.

Should you bargain banal successful Ford Motor Company close now?

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