Should You Buy Ford or Tesla?

A few years ago, if you wanted to invest in automakers, Tesla was the go-to option, while Ford was out of the equation. At that time, Tesla was on the journey of becoming a trillion-dollar company, and Ford was neutral for years.

Now things have changed.

Recently, Ford’s Mustang Mach-E won the award for a top electric vehicle from Consumer Reports, meaning Tesla is no longer the king of EV (at least for now). Still, Tesla is a great company.

If you want to invest in one of them, but you are unsure which one, keep reading.

Product Portfolio

Tesla has revolutionized the auto industry, but Ford is starting to catch up with them in terms of vehicles. As mentioned before, the Mustang Mach-E beat Tesla’s Model 3.

The demand for Ford’s F-150 Lightning is high. It has over 200,000 reservations and is expected to be released this spring.

On the other hand, Tesla has 250,000 reservations for its Cybertruck. The bad news is that it has been delayed for several years, and it seems it will not be released this year.

Also, Ford is launching new models that are expected to be big hits. For example, the revamped Maverick just won North American Truck of the year, and the remake of the Bronco won the same award for a utility vehicle.

It is important to mention that as Ford is catching up with Tesla, it is also expanding its portfolio of models.

Returns to Shareholders

Neither Ford nor Tesla is actively involved in share repurchases. Currently, Ford pays out a dividend of 2%, while Tesla does not. This means Ford gets the edge thanks to its dividends.

So… Ford or Tesla?

Based on the broader product portfolio and better returns to shareholders, Ford is the go-to option for long-term investments.