Investing in Electric Vehicles: Navigating the Auto Industry Outlook for 2024
**It seems prudent to wait for a better entry point in Ford Motor Company (F) while avoiding struggling Tesla, Inc. (TSLA) could be wise**.
Advanced battery technology and supportive policies are driving electric vehicles’ growth, making them increasingly attractive worldwide. The auto industry outlook for 2024 includes economic challenges, but global new light vehicle sales are expected to rise, with a significant portion being battery electric vehicles.
The U.S. auto market anticipates slow growth and a continued expansion in the electric vehicle segment, supported by government incentives and environmental concerns. The global EV market is projected to grow substantially by 2030.
Ford Motor Company (F) is seen as a stock to hold. It is a global automotive company with a wide range of vehicles and also offers financing and leasing services. Despite challenges, the company’s cash from operations is significantly higher than the industry average. Ford’s financial outlook includes expected revenue growth but a potential decline in EPS in the short term. The stock has seen some appreciation over the past three months but has declined over the past year.
Tesla, Inc. (TSLA) is advised as a stock to avoid. The company faces challenges, including decreased shipments and price cuts in China. Tesla’s financial metrics and market valuations show significant disparities compared to industry averages. The stock’s performance has been declining over recent periods, and future earnings estimates suggest a decrease in EPS.
Investors are encouraged to focus on the broader trends influencing the electric vehicle market, including technological advancements, government support, and growing consumer interest, while carefully considering the current financial health and market position of companies like Ford and Tesla.
Analyst comment
Positive news for Ford Motor Company (F) and negative news for Tesla, Inc. (TSLA). Ford is expected to see revenue growth and has strong cash from operations, while Tesla faces challenges and a decline in EPS. The market for electric vehicles is projected to grow substantially, benefiting companies like Ford.
