Ford Motor Co.'s 45% rally has evaporated as economic pressure on US automakers and fading AI windfall hopes weigh on the stock. Shares fell as much as 2.8% on Wednesday, dropping below $11.99 for the first time since May, erasing the surge from earlier this year when investors anticipated profitable AI deals from its battery-storage business.

"I do not believe that the AI halo will return until Ford actually starts producing returns from the battery storage unit, which is a 2027, 2028 story," said Joe Gilbert, portfolio manager at Integrity Asset Management. Elevated fuel prices, a shaky US consumer, surging interest rates, and intensifying competition have weighed on the auto sector in 2026. Ford and General Motors Co. have underperformed the market.

CEO Jim Farley said a supplier issue temporarily impacted F-150 pickup production in the third quarter. Morgan Stanley analyst Andrew Percoco had previously sparked the AI hype by noting Ford's energy-storage business could secure deals with hyperscalers. However, investors now await concrete updates on the business, which is years from turning a profit.