Tesla Motors Inc (TSLA), Ford Motor Company (F): Is This the Greatest American-Made Car Ever?

With a vehicle so far ahead, it’s created giggle fits during Tesla Motors Inc (NASDAQ:TSLA) conference calls, when comments regarding competition arise. With such an innovative and successful product that seems to have a ridiculously bright future, this could be a once-in-a-generation investment opportunity, right?

Perhaps, but let’s dig in a little first.

Investment takeaway
Investors have been climbing over each other to get into this stock before and after the company posted its first-ever quarterly profit. Look at the stock’s performance this year.

That increase no doubt makes it one of the hottest stocks and stories on the market — and it’s really just scratching the surface on its potential. As the supercharger station buildouts expand, and as the company works toward producing a cheaper vehicle for the masses, the stock could continue its upward momentum. Even before its mass-produced vehicle arrives, sales of the Model S are expected to nearly double next year. The Model S has already captured 8.4% of the luxury market and has barely been selling for over a year — compared with some luxury automakers that have been selling for decades.

However, there is a lot of risk with a stock that has soared so high, so quickly. As the market for EVs grows, there are juggernaut companies such as Ford Motor Company (NYSE:F), General Motors, Toyota, and Honda that will dump hundreds of millions into R&D to make their EVs much more competitive. Right now those automakers are a long way off, but they aren’t going to give up anytime soon.

Tesla Motors Inc (NASDAQ:TSLA)’s products are revolutionary, but the road ahead for its stock price will be filled with bumps. If you buy into Tesla, now you’d better be patient enough to hold for a decade at least.

The article Is This the Greatest American-Made Car Ever? originally appeared on Fool.com and is written by Daniel Miller.

Fool contributor Daniel Miller owns shares of Ford. The Motley Fool recommends and owns shares of Ford and Tesla Motors.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.