While Detroit rival General Motors (GM) fell by just over 1% last week, Ford (F) lost nearly 15%. The price action of the two stocks has diverged in recent weeks, particularly since Ford announced a foray into the energy storage business in May.
While energy storage might not be a hot business otherwise, the sector is seen as a play on artificial intelligence (AI). Hyperscalers have been signing massive power purchase agreements to ensure their power-guzzling data centers have sufficient energy. Since data centers cannot afford any power disruption, they also need energy storage systems to maintain 100% uptime and navigate grid constraints.