"Ford Motor Co. ( NYSE: F) posted a strong quarter, and its stock rose to a 52-week high of almost $14. That is up 33% this year and takes Ford's market capitalization to $53 billion. It also has a forward yield of 4.5%. Tesla Inc. ( NASDAQ: TSLA) stock is up 14% this year. It has posted mediocre earnings and has a market cap of $1.53 trillion. It does not pay any dividend at all."
"Some investors still believe that electric vehicles (EVs) are the future of the car industry, even though EV sales in most nations, other than China, have been weak. EV believers still see Tesla as one of two industry leaders, along with BYD. Ford, on the other hand, has invested tens of billions of dollars in EVs but has only small unit sales and significant losses to show for it."
"The primary difference between the two companies is a message from Musk that Tesla will become one of the largest artificial intelligence firms in the world. It will also be a leader in robotics. If investors wait just two or three years, Tesla's revenue will show this is true, which will cause revenue to explode upward into the hundreds of billions of dollars. There is not much proof yet that this is the case."
Ford posted a strong quarter with its stock hitting a 52-week high near $14, rising 33% year-to-date, valuing the company at about $53 billion and offering a 4.5% forward yield. Tesla's stock is up 14% this year, carries mediocre earnings, a $1.53 trillion market cap, and pays no dividend. Elon Musk's conduct likely cost some Tesla sales, while Bill Ford draws little public attention. EV proponents view Tesla and BYD as leaders even as EV sales lag outside China. Ford has invested heavily in EVs but shows limited unit sales and losses. Tesla's valuation rests largely on expectations that it will become a major AI and robotics company, potentially driving massive future revenue growth despite limited current proof.
Read at 24/7 Wall St.
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