Ford Surges Over 40% in May, Best Post-Financial Crisis Monthly Performance
Taylor Wilson
Ford shares rose more than 40% in May, their best month since 2009 — driven not by car sales but by the market repricing its energy-storage unit as an AI infrastructure play.
Why did a carmaker rally 40% in a single month?
Ford gained over 40% in May, the biggest monthly move since a 127% surge in April 2009 during the financial-crisis rebound.
The stock hit its highest level since April 2022 and posted eight straight up days — the longest streak in nearly three years.
This means → the market is no longer valuing Ford as "a car company." It is pricing it as a potential power supplier for AI.
What did the Morgan Stanley report actually say?
On May 12, Morgan Stanley analyst Andrew Percoco published a note valuing Ford's energy business at $10 billion.
He forecast that Ford could sign deals with hyperscale cloud companies, supplying battery storage to data centers and utilities.
In plain terms = Ford has battery tech and manufacturing scale; data centers are desperate for power. The report bet these two needs would meet.
How much of this story is real — and how much is hope?
Eric Diton, president of Wealth Alliance, argued that Ford's EV base makes the pivot to storage "not a stretch." Tesla's storage business already accounts for 13.5% of its 2025 revenue — a working precedent.
But Joe Gilbert, portfolio manager at Integrity Asset Management, was blunt: the storage unit is not expected to turn a profit until 2028. "It's more hope and dreams than fact," he said.
This reflects a market that has priced the story far ahead of the business.
Who is buying — and who is not?
S3 Partners data show roughly 22.3 million shares — about $369 million — of short covering over the past 30 days. Shorts lost $395 million mark-to-market, a ~24% drawdown.
S3 analyst Ihor Dusaniwsky noted that shorts are "exiting positions as the stock rises."
Yet Vanda Research data show retail investors are not driving the rally — retail participation has been "relatively muted," with net selling in recent sessions.
Put simply = this move is short-squeeze plus institutional flow. Retail hasn't joined yet.
What does "AI adjacency" premium actually mean?
Haris Khurshid, CIO of Karobaar Capital, put it plainly: the market is rewarding "AI adjacency" almost as much as actual AI.
The pattern is broader: Caterpillar is up over 150% in 12 months, Vertiv Holdings up 190%, and Japan's Ajinomoto up 55% this year — because its insulation film goes into chip packaging.
This means → any business that touches AI infrastructure is getting a premium. Ford is the latest name on that list.
Is Ford actually expensive at this level?
Ford trades at 9.7× forward P/E — the 471st cheapest stock in the S&P 500, well below the index average of 21× and the Nasdaq-100's ~25×.
But that multiple has expanded 33% since April 30. It is rising fast even if the absolute level is still low.
Fellow Michigan automakers GM rose about 10% in May and Stellantis about 13%, trading at 6.4× and 6.5× forward P/E respectively — neither has received the same AI-narrative premium.
This reflects a market that is not repricing "autos" broadly. It is singling out the carmaker with an AI story.
Content is for reference only, not financial advice.