Are Tesla and Ford Smart Portfolio Picks in March?

Mark Eisenberg
Photo: Finoracle.net

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.

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Mark Eisenberg is a financial analyst and writer with over 15 years of experience in the finance industry. A graduate of the Wharton School of the University of Pennsylvania, Mark specializes in investment strategies, market analysis, and personal finance. His work has been featured in prominent publications like The Wall Street Journal, Bloomberg, and Forbes. Mark’s articles are known for their in-depth research, clear presentation, and actionable insights, making them highly valuable to readers seeking reliable financial advice. He stays updated on the latest trends and developments in the financial sector, regularly attending industry conferences and seminars. With a reputation for expertise, authoritativeness, and trustworthiness, Mark Eisenberg continues to contribute high-quality content that helps individuals and businesses make informed financial decisions.​⬤