1 Surprising Reason I'm Bullish on Ford
Ford Motor Company's (NYSE: F) electric vehicle (EV) ambitions fell far short of its goals. The EV division bled cash, leading to billions in losses and cancellations. It was one of the most costly failures in the history of the American car market. While many investors lost interest in Ford, I'm bullish on the stock, and not because of any new car or truck model.
Ford is doing something unusual, but quite innovative and opportunistic. The automaker decided that instead of scrapping its battery infrastructure entirely, it could be repurposed. Ford Energy was born from this idea and is a wholly owned subsidiary of Ford that will focus on battery energy storage systems for data centers, industrial customers, and utilities. That's right, Ford is entering the artificial intelligence (AI) infrastructure game, and it's in a fortuitous position to do so.
Specifically, Ford will reoutfit its EV battery facility in Kentucky as part of this pivot, giving the factory new life rather than abandoning it. Power demand from data centers is a rapidly expanding opportunity. The battery storage market is projected to grow to $161 billion by 2034.
Source Fool.com
