2 Alternatives To Tesla (1 Safe, 1 More Risky)

2023-08-09 - Scroll down for original article

Company: Ford Motor Company


Ford Motor Company is an established automobile manufacturer with a history of 120 years. It is recognized for its brand name and generates significant revenue each quarter. Ford has been making efforts to close the gap with Tesla in the electric vehicle (EV) market and aims to have a production run rate of 600,000 vehicles by 2024. Despite facing challenges in the past year, Ford has delivered better stock performance compared to Tesla, making it a solid alternative for investors looking for exposure to the EV industry.

Article Analysis

The article discusses Ford as a low-risk alternative to Tesla for investors seeking exposure to the EV industry. It highlights Ford's history and brand recognition, as well as its ongoing efforts to increase EV production. The positive news about Ford beating Q2 earnings estimates and raising forward guidance is also mentioned, with a focus on forecasted EV demand playing a significant role. Overall, the article has a positive sentiment towards Ford, highlighting its potential as an alternative to Tesla.

Market Reaction

Historically, Ford's stock price has been less volatile compared to Tesla. While both companies experienced a rough patch in the past year, Ford's stock performed relatively better with a decline of 18% compared to Tesla's 13%. However, both companies had significant gains in the months leading up to August 2020, with a neck and neck performance of 85% each. Therefore, it is evident that positive news and strong performance can positively impact Ford's stock price.

Investor Sentiment

The article may have positively influenced investor sentiment towards Ford. The news of Ford beating Q2 earnings estimates and raising forward guidance suggests that the company is taking its EV business seriously. Higher forecasted EV demand adds to the positive sentiment, indicating potential growth opportunities for Ford. Investors may view Ford as a stable alternative to Tesla, especially considering its established presence in the automotive industry and ability to generate consistent revenue.

Competitor Comparison

Ford's main competitor in the EV market is Tesla. While Tesla has a first-mover advantage and is considered the leader in the EV space, Ford offers a solid alternative due to its long history, brand recognition, and existing revenue generation. Tesla may have a more aggressive stock price performance, but Ford's stock has demonstrated stability and resilience, making it an attractive option for investors who value lower risk.

Risk Factors

Ford faces risks in the highly competitive EV market. The article mentions the rising interest rate cycle, which increases the cost of funding for growth stocks like EV companies. Ford will need to manage its expenses effectively to maintain profitability and fund its ambitious EV production goals. Additionally, uncertainties in the EV market and changing consumer preferences pose risks. If Ford fails to keep up with technological advancements and market trends, it may struggle to compete effectively against other EV manufacturers.


The news article has a positive impact on Ford's stock price potential. Ford's established position, brand recognition, and strong revenue generation make it a low-risk alternative to Tesla for investors interested in the EV industry. The positive news about beating earnings estimates and raising forward guidance demonstrates Ford's commitment to its EV business. While risks exist, such as the rising interest rate cycle and market uncertainties, Ford has the potential to capitalize on the growing demand for EVs. Investors should closely monitor Ford's EV production progress, technological advancements, and market trends to assess the long-term implications and opportunities.


This financial report is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with a financial professional before making any investment decisions.

Original Article:

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Key Points Tesla shares are up 140% this year so far. Ford offers a solid low-risk alternative to those looking for EV exposure. NIO is riskier but has greater potential for higher returns. 5 stocks we like better than Tesla The electric vehicles (EV) industry has been one of the hottest out there in recent years. And even though the rising interest rate cycle has made it more expensive for EV stocks, which are growth stocks by definition, to fund their expansion, it feels like it’s an unstoppable force at this point. At this stage, all of our readers will be familiar with Tesla Inc NASDAQ: TSLA, with many surely having already owned shares at some point. But while Tesla, in our view at least, remains the out-and-out leader in the space, competition has been heating up. Just because Tesla has a first-mover advantage and is many years ahead of its peers doesn’t mean there’s not still an opportunity to be had in alternative EV stocks. Here are two worth keeping on your watchlist. Ford is arguably the most established of Tesla’s competition. It has a history going back 120 years, as well as a brand name that is just as recognizable. In addition, it’s already turning over tens of billions in revenue every quarter, which effectively removes the business continuity risk that has plagued many of the not-yet-at-market alternative EV stocks. It took some time for their EV plans to get off the ground, but the past two years have seen them starting to close the gap to Tesla seriously. Ford is targeting an EV production run rate of 600,000 vehicles by 2024 as part of its longer-term goal of hitting 2 million. These are astonishing numbers and indicate how seriously Ford is taking its EV business. Investors haven’t ignored it either. The past year has been tough for both stocks, but Ford avoided the 60% haircut that Tesla investors had to stomach. To be fair, Ford’s rallies have also been less aggressive, but it’s still only down 18% compared to last August, while Tesla is down 13%. If we rewind the clock to August 2020, both stocks are neck and neck with gains of 85% each. The last week of July saw Ford beat their Q2 earnings estimates while also raising their forward guidance. Forecasted EV demand is playing a prominent role in this, and investors looking at an alternative to Tesla have a strong option with Ford. If Ford is to be considered the most established alternative to Tesla, then NIO represents the newer wave of EV stocks that are still winning investors’ confidence. While Ford has effectively traded sideways for the past year, NIO shares were down as much as 65% coming into the summer. A recent rally has taken the edge of that drop, but they’re still trading lower by 35% versus where they were this time last year. This is indicative of falling confidence in the market that NIO can ever live up to the hype that sent their shares on a 3,000% rally in 2020. But with a clear bottom having been put in, those of us on the sidelines can get a clearer picture of where things might be going in the near to medium term. For starters, NIO’s July deliveries out of China saw a 90% jump month on month. This helped drive a 103% year-on-year jump, with a cumulative delivery number for the year of 364,579. By any measure, these are good results, which makes the recovery potential in NIO particularly appetizing. As recently as June of this year, NIO shares were trading back at their 2018 levels. For context, their quarter revenue has increased 42,000% in the five years since. NIO’s chart over the timeframe doesn’t make for pretty viewing, but there’s an argument to be made that they’ve had their baptism of fire and are actually starting to mature as a bonafide EV company. They remain the riskier of the two alternatives but, at the same time, hold the greater potential for another eye-watering rally. Before you consider Tesla, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Tesla wasn't on the list. While Tesla currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here