Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Look out Tesla Motors Inc (TSLA), Here Comes Ford Motor Company (F)

Page 1 of 2

Tesla Motors Inc (TSLA)Tesla Motors Inc (NASDAQ:TSLA)‘s meteoric rise this year has been nothing short of impressive, up over 250% year to date. The company itself has a lot going for it: its Model S received a 99 out of 100 from Consumer Reports, the best score for an auto in the publication’s history. Aside from a quality product, Tesla Motors Inc (NASDAQ:TSLA)’s visionary CEO Elon Musk can apparently take any far-fetched idea and turn it into business gold. Despite that, I still believe Tesla Motors Inc (NASDAQ:TSLA)’s valuation has risen too high too quickly and will face competition from auto giants like Ford Motor Company (NYSE:F) that could give Tesla trouble sooner than you think.

Electric vehicles
Ford Motor Company (NYSE:F)’s share of EVs in the U.S. has grown to nearly 16% this year through June, which is quadruple what it was last year. Ford’s success in EVs is part of the reason that it has been able to fuel its overall market share growth in the U.S. by a full percentage point – the most by any full-line automaker, according to the company.


Photo credit: Ford Motor (NYSE:F) Company press release.

Ford’s success derives from a slew of vehicle options, as shown above. Now I understand that Tesla Motors Inc (NASDAQ:TSLA)’s Model S shouldn’t be directly compared to Ford Motor Company (NYSE:F)’s models because it isn’t an apples-to-apples comparison. However, when Elon Musk brings out the mass-produced vehicle at perhaps half the cost of the Model S the lines of competition between Tesla Motors Inc (NASDAQ:TSLA) products and Ford’s hybrids and EVs will definitely begin to blur.

Those who think that Tesla Motors Inc (NASDAQ:TSLA) is the future of the industry may be correct, but those same people often think that juggernauts like Ford Motor Company (NYSE:F), General Motors Company (NYSE:GM) and Toyota Motor Corporation (ADR) (NYSE:TM) will simply roll over and die – which I believe to be very foolish.

Ford Motor Company (NYSE:F) will be expanding electrification engineering jobs by nearly 50% to have more than 500 salaried employees working on research and development. It’s also investing $50 million in EV development centers to further strengthen its vehicle quality. In addition to all that, Ford is also doubling its electrification battery-testing capabilities this year helping to speed hybrid and EV development by as much as 25%.

“This investment in new engineers and expanded facilities helps us prepare for growth,” said Raj Nair, group vice president, global product development in a Ford press release. “All of us at Ford Motor Company (NYSE:F) remain absolutely committed to offering customers a choice of leading fuel-efficient vehicles – from EcoBoost-powered gasoline engines and hybrids to plug-in hybrids and electrified vehicles.”

Page 1 of 2

Biotech Insider Alert - $5 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!