General Motors Company (GM), Tesla Motors Inc (TSLA), The D-2 Players, And A Mass-Market Player?

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Furthermore, JPMorgan believes that expansion into higher volume segments with lower price points seems fraught with greater risk relative to demand, execution, and competition. Meanwhile, valuation appears to be pricing in upside related to expansion into mass market segments beyond the currently announced Model S and Model X segments.

However, what JPMorgan doesn’t take into account is that Tesla Motors Inc (NASDAQ:TSLA) is attractively saddled with none of the pension, OPEB, and other legacy costs which frequently burden large entrenched automakers. Its products are bold, distinctive, elegant, and highly entertaining to drive. The company is led by visionary leadership, backed by a management team with solid functional strength.

No doubt, Tesla Motors Inc (NASDAQ:TSLA) has remained a highly polarized stock. Barclays has given the stock a $65 price target and believes that the company’s products can enter the mass-market as early as introduction of Gen-III Model in 2017.

My Foolish take

Auto companies are having a great time out there in North America. A recent pull back of auto sales might not be a worry when the bigger picture is kept in mind — with average age of the U.S. fleet at record high levels, cheap and easy availability of credit and replacement demand on the rise, there is hardly any chance that autos sales will not keep up their momentum.

Overall, I am bullish on all three stocks. General Motors Company (NYSE:GM) has been attractive due to its phenomenal growth in China. Ford Motor Company (NYSE:F) is a cheap stock and its One Ford strategy is really working well. Tesla Motors Inc (NASDAQ:TSLA)’s differentiated product model has worked and is expected to work in the future as well.

The article These Automakers Are Worth Buying Despite a Temporary Blip originally appeared on Fool.com and is written by Zain Abbas.

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