Tesla Motors Inc (TSLA): Surprise, This Car Maker Is Overpriced!

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Ford Motor Company (NYSE:F)’s June sales were higher than rivals GM, Toyota Motor Corporation (ADR) (NYSE:TM), Honda, and Chrysler. And Ford has been putting up solid numbers all year. Revenue growth was higher year-over-year in each of the last two quarters. The solid showing of late has led the shares on a decent ascent, but nothing like what Tesla’s seen. Investors looking for a U.S. auto company should take a look.

Toyota is not only one of the largest car companies in the world, but it’s also one of the largest makers of hybrid vehicles. That should interest the environmentally friendly and investors seeking a way to participate in the recent uptick in auto sales.

The Japanese company went through a period in which its quality was sorely questioned. That’s largely past, though the end result is the loss of its perceived quality lead. The world-wide recession also took a toll on performance. However, Toyota appears to be getting back into the game.

Revenues and earnings headed solidly higher in fiscal 2013. Though both remain off of their 2008 peak, the business is showing glimmers of its old self. The premium PE might interest more aggressive investors who think the turnaround has more room to run.

Forget the fad

Unless Tesla Motors Inc (NASDAQ:TSLA) completely reinvents the auto industry in the next few months, or even years, the shares are too expensive today. Investors looking for a U.S. auto stock should stick to Ford. Those with an environmental bent should take a look at Toyota and its mainstream Prius brand.

The article Surprise, This Car Maker Is Overpriced! originally appeared on Fool.com and is written by Reuben Brewer.

Reuben Brewer has no position in any stocks mentioned. The Motley Fool recommends Ford and Tesla Motors (NASDAQ:TSLA). The Motley Fool owns shares of Ford and Tesla Motors. Reuben is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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