Tesla Stock vs. Ford Stock: Which Is a Better Investment?
Written by
Caitlyn Moorhead
Edited by
T. Woods
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The automobile industry is in constant flux as technology advances to points that seemed impossible a few years ago. While some investors find the volatile atmosphere of auto trading exhilarating, jumping into motor vehicle stocks is a risky adventure for average Americans.
Given the industry’s combustibility, adding controversial figureheads and politics — such as Elon Musk’s recent endeavors — into the mix can make investing prospects even more interesting. Musk is seemingly synonymous with the Tesla brand, and his heading of the Department of Government Efficiency (DOGE) in the White House under the Donald Trump administration may have a serious impact on the automotive industry, for better or worse.Â
On the other hand, Ford Motor Co. can also be a mixed bag for investors. While many analysts recommend buying Ford stock for its potential, many others remain bearish on Ford mainly due to its struggle to find footing in the electric vehicle market.
Keep reading to see how each stock has performed and which you consider for your next investment.
Tesla Stock: Quick TakeÂ
- Stock price: $239.50
- Market cap: $741 billion
- 52-week high: $488.54
- 52-week low: $138.80
To say Tesla (NASDAQ: TSLA) had an interesting first quarter in 2025 is an understatement. Tesla Stock has essentially plummeted nearly 50% since December, leaving many investors scrambling to navigate its volatility. Simply put, over $800 billion in market capitalization has been knocked out, which makes Tesla stock the worst-performing major tech stock of the period.
However, though this significant dip has been painful for many investors, leaving many questioning both their exposure and their loyalty, some expert investors would advise you to reassess but not panic sell. If your asset allocation now feels wonky, consider rebalancing or devising a new investment strategy, factoring in the turbulence of Tesla shares.Â
Ford Stock: Quick Take
- Stock price: $9.94
- Market cap: $39.33 billion
- 52-week high: $14.85
- 52-week low: $9.06
This is a fascinating time for traditional car companies too, who have had to adapt to a future manufacturing electric vehicles or face the prospect of closing up shop over the next decade. Despite being one of the oldest car manufacturers in the world, Ford Motor Co. (NYSE: F) has always been lauded for its innovative outlook, putting it in good stead to remain one of the automotive leaders moving forward.
Promising to spend $50 billion on EV models through 2026 and produce two million EVs by that time annually, Ford is already a major player in the electric vehicle game. However, last year, Ford’s EV division announced a $1.3 billion loss in the first quarter, suggesting profitability may be a long way off — especially when you factor in the impending tariffs of 2025.Â
As Ford is merely a product of the auto industry in which it competes, only time will tell if its pivot into the hybrid arena will prove fruitful. The motor company is a cyclical business, which means when times get tough, long-term investors could benefit.
Yet, the truth of the matter remains that Ford stock has simply underperformed in the S&P 500 through multiple economic cycles.
Final Take To GO: Tesla vs. Ford
The bottom line is that your investment strategy needs to be continually reassessed, especially when it comes to volatility like you see in the automotive industry. Tesla currently remains a leader in electric vehicles, but Ford offers a more established and potentially somewhat safer dividend-paying option.
Ultimately, Ford is the better stock buy even with its lagging in the stock market and less growth potential. It’s too risky to believe that competition isn’t going to be ceaseless and aggressive, and that Tesla can somehow fend everyone off to rule the market, especially with its current performance. The many issues facing Musk and his company feel like the beginning of something more lasting than transitory.
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