Jim Cramer argues Ford’s valuation story should be about energy storage, not just trucks or EVs

Ford Motor Co. has spent years trying to persuade investors that the market is undervaluing the company, often comparing it unfavorably with other traditional automakers. In a recent discussion highlighted by Yahoo Finance, CNBC host Jim Cramer framed the issue as one of perception, arguing that Ford’s most important work may not be the part investors are focusing on.

Cramer’s central point was that Ford’s “real story” is not trucks or electric vehicles. Instead, he pointed to Ford’s energy battery storage system as the business angle that could matter more for the company’s longer-term outlook. The remark underscores a broader theme in autos and adjacent infrastructure: electrification is not only about passenger vehicles, but also about storage and the grid.

The discussion also referenced that Ford had a strong first quarter, suggesting operational momentum that could help the company’s case for a higher valuation. Even with that positive quarter, the segment’s framing implied that the market still discounts Ford based on what it views as the core auto playbook rather than Ford’s additional businesses.

Within that context, Cramer’s emphasis on energy storage is notable because it shifts the narrative away from the most widely tracked metrics for automakers, such as vehicle margins, pricing, and EV ramp progress. An energy battery storage system, in this framing, is a technology used to store electricity for later use, typically connected to power management needs that can be relevant to utilities, commercial users, and grid balancing.

Ford has increasingly talked about its involvement in batteries and energy-related solutions as part of a wider electrification strategy. However, the post did not provide specific program details or financial disclosures about energy storage in the excerpted material, such as unit economics, production capacity, contract terms, or expected contribution to revenue and profit.

Company valuation debates often intensify when markets see a company as having limited “multiple expansion” catalysts, meaning investors are not willing to assign a higher earnings or growth valuation compared with peers. Cramer’s argument appears aimed at expanding Ford’s catalyst set, by tying the company’s story to energy storage rather than only to the competitive dynamics of trucks and EVs.

Still, the segment left open the question of how material Ford’s energy battery storage business is today. The cited discussion did not outline segment revenue, backlog, or margins for energy storage, nor did it specify customer contracts or timelines in the available material. As a result, readers are left to consider the strategy without concrete, quantified progress in the report.

Going forward, investors will likely focus on whether Ford continues to substantiate the energy storage narrative with clearer metrics, including production scale, customer adoption, and financial impact. Watch for management commentary around battery and storage product commercialization, as well as disclosures that separate energy-related results from the broader auto business, which would make the valuation debate easier to evaluate.