Ford and Tesla Prospects - Buy or Sell?

With Ford's stock price having toppled to $11 from $17 under Mark Fields leadership, Jim Hackett who stepped in as CEO last week has inherited a long route of recovery in catching up with new technologies and realigning the company's strategies. Financially, Ford's sales growth came at a measly 1.3% with downward yet positive earnings.

Tesla, on the other hand, who prides itself on being the top ranked safety car, is set to release its affordable Model 3 that retails for $35,000 in July. It has defined itself as a mobility company with its new AI software maturing from the millions of miles drivers will log that will help pave its way as the autonomous vehicle of the future. After meeting its deliveries in the first quarter and an investment boost by a Chinese firm, Tesla reached new highs over $300. Morgan Stanley's auto analyst Adam Jonas valued the stock at $305 with a bull case of $511 and bear of $50. There does lie considerable competition in the driverless realm such as Google Waymo's partnership with Lyft, Toyota's Guardian Angel, and Apple. Additionally, concerns lie in Tesla's mass production capabilities with it expected to churn out 1,000,000 cars/year by 2020 while it is still struggling in producing 80,000/year.

What's your take on these automakers?

 
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