In the past month, shares of Ford (F) and Tesla (TSLA) have seen notable increases, with Ford rising over 23% and Tesla gaining 15%, despite challenges like declining vehicle sales and the expiration of federal EV tax credits. This rally is attributed to Ford’s optimism about its new Ford Energy business and Tesla’s recent launches in Full Self-Driving technology in China and buzz around SpaceX potentially going public next month.
Ford has raised its 2026 EBIT outlook for its Ford Blue division to $4.5-$5 billion, while its Ford Pro is expected to generate $6.5-$7.5 billion in EBIT this year. Conversely, Tesla is facing increased competition and an aging vehicle lineup, yet it holds an order backlog not seen in two years and continues to invest heavily in AI and autonomy, raising its capital expenditure forecast to $25 billion.
Overall, Ford appears to offer a more balanced investment approach with solid earnings from traditional operations and a 4% dividend yield, as opposed to Tesla’s reliance on future innovations for growth.
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