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TSLA or F: Which Stock Deserves a Place in Your EV Portfolio?
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Key Takeaways
Tesla deliveries fell 13% in Q1 and 13.4% in Q2 2025, exposing demand weakness despite steady production.
Ford is pivoting to affordable EVs with its Universal EV Platform, targeting a $30,000 midsize pickup by 2027.
F shares are up 18% YTD, while Tesla is down 16%, with Ford trading at a far lower sales multiple than Tesla.
Not long ago, Tesla (TSLA - Free Report) was practically the only brand people thought of when they pictured an electric car. The brand had become synonymous with EVs, much like Amazon became the go-to name for online shopping or Netflix for streaming. Tesla transformed the auto industry and sparked a global EV revolution.
But today, the playing field looks very different. Climate concerns, advances in battery technology and faster charging have made the space crowded. Legacy automakers, once lagging behind, are now making bold moves. One of the most notable companies is Ford (F - Free Report) . With Tesla struggling to keep up momentum and Ford rewriting its EV strategy, the question for investors is: Which stock offers better EV exposure?
Tesla’s EV Troubles Mount
Tesla is facing challenges that even its loyal supporters can’t ignore. After posting its first-ever annual delivery decline in 2024, the slide has continued into 2025. Deliveries in the first quarter fell 13% year over year, followed by another 13.4% decrease in the second quarter, bringing sales down to 384,122 vehicles. This was only slightly better than the first quarter, which had already been Tesla’s weakest quarter for deliveries in more than two years.
What makes the weakness stand out is that production wasn’t the problem. CEO Elon Musk had blamed first-quarter softness on factory shutdowns related to the Model Y ramp-up. But with plants running in the second quarter and inventories piling up, the issue is demand, not supply.
So, what’s behind Tesla’s delivery slump?
First, the lineup looks dated. Tesla hasn’t rolled out a truly new mainstream vehicle in years. Minor refreshes haven’t moved the needle, and the one fresh model, the Cybertruck, has struggled with its polarizing design and limited mass appeal.
Second, the competition has grown stronger and smarter. Tesla no longer holds a monopoly on desirable EVs. Rivals are launching models with modern features, sleek designs and competitive pricing.
And finally, there’s the “Musk factor.” The CEO’s online presence and political commentary are increasingly polarizing. For some consumers, Tesla as a brand has become inseparable from Musk’s persona — and not always in a good way. With so many EV options now available, buyers turned off by Musk’s behavior can easily look elsewhere.
Musk himself has cautioned that upcoming quarters will be rough. Tesla is expected to deliver fewer cars in 2025 than it did in 2024, marking a second straight year of decline. That’s a sharp reversal for a company that once promised 50% annual growth.
The financials paint the same picture. The last reported quarter brought Tesla’s steepest revenue drop in more than a decade. Automotive revenues, the core of the business, plunged due to falling deliveries and lower average selling prices. Margins also came under pressure, with the automotive gross margin narrowing to 17% and the operating margin falling to just 4.1%. Revenues dropped 12%, while expenses fell only 1%, exposing weakening efficiency.
Ford’s EV Reset Plan
Ford’s EV journey has also had its fair share of setbacks. The company entered the space with a splash in 2021, launching the Mustang Mach-E, then adding the F-150 Lightning and an electric van. However, as EV demand failed to surge as quickly as expected, raw material costs spiked and Tesla slashed prices aggressively, Ford’s EV unit started looking less appealing.
Losses have been steep. Over the past two and a half years, Ford’s EV division has racked up about $12 billion in red ink, including $2.17 billion in just the first half of this year. Sales have also stumbled. In the second quarter of 2025, Ford’s all-electric sales fell 31.4% year over year to 16,438 units. Safety recalls, stop-sales on the Mustang Mach-E and limited availability of the F-150 Lightning weighed heavily.
But unlike Tesla, Ford isn’t doubling down on the same strategy. It’s pivoting. The automaker is moving away from expensive, high-end EVs and shifting its focus toward affordability. The centerpiece of this new plan is the Ford Universal EV Platform, designed for a new family of lower-cost EVs.
The first model off this platform will be a midsize, four-door electric pickup priced around $30,000. Production will take place at the Louisville Assembly Complex in Kentucky, supported by a $5 billion investment. Deliveries are scheduled to begin in 2027.
Ford CEO Jim Farley has even likened this shift to a new “Model T moment.” Alongside this effort, Ford is delaying its larger EV truck and van programs until 2028 while doubling down on lithium iron phosphate (LFP) batteries. The company will be the first in the United States to assemble LFP packs domestically, which should lower costs and improve packaging efficiency.
The Universal Platform promises major production efficiencies. Ford says the design reduces parts by 20%, fasteners by 25%, and plant workstations by 40%. Assembly times are expected to improve by 15%. These savings are critical to hitting the $30,000 price target, especially given the EV policy under President Donald Trump.
TSLA vs. F: Price Performance & Valuation Comparison
Year to date, Ford shares have gone up 18%, while Tesla stock has declined roughly 16%.
Image Source: Zacks Investment Research
Ford is trading at a forward sales multiple of 0.29, below its median of 0.31 over the last five years. Meanwhile, Tesla looks overvalued at a forward sales multiple of 10.58, which is also above its median of 8.21 over the last five years.
Image Source: Zacks Investment Research
What Do Estimates for TSLA & F Say?
The consensus mark for Ford’s EPS has moved north over the past 60 days.
Image Source: Zacks Investment Research
Meanwhile, the consensus estimate for TSLA’s EPS has moved south over the past 60 days.
Image Source: Zacks Investment Research
Bottom Line
Choosing between Tesla and Ford for EV exposure comes down to what investors want — a premium brand with uncertain growth or a legacy automaker betting on scale and affordability. Tesla’s challenges reflect a company that is quickly losing its once-unshakable edge, with demand and pricing power slipping just as competition ramps up.
Ford, while still early in its reset, is laying the groundwork for a new phase in EV adoption. By focusing on cost efficiency, domestic battery production and a lineup of accessible models, Ford is positioning itself to capture buyers who have been priced out of the market so far.
For investors seeking exposure to the next wave of EV growth, we believe Ford offers a more grounded path than Tesla’s high-priced, slowing trajectory.
Image: Bigstock
TSLA or F: Which Stock Deserves a Place in Your EV Portfolio?
Key Takeaways
Not long ago, Tesla (TSLA - Free Report) was practically the only brand people thought of when they pictured an electric car. The brand had become synonymous with EVs, much like Amazon became the go-to name for online shopping or Netflix for streaming. Tesla transformed the auto industry and sparked a global EV revolution.
But today, the playing field looks very different. Climate concerns, advances in battery technology and faster charging have made the space crowded. Legacy automakers, once lagging behind, are now making bold moves. One of the most notable companies is Ford (F - Free Report) . With Tesla struggling to keep up momentum and Ford rewriting its EV strategy, the question for investors is: Which stock offers better EV exposure?
Tesla’s EV Troubles Mount
Tesla is facing challenges that even its loyal supporters can’t ignore. After posting its first-ever annual delivery decline in 2024, the slide has continued into 2025. Deliveries in the first quarter fell 13% year over year, followed by another 13.4% decrease in the second quarter, bringing sales down to 384,122 vehicles. This was only slightly better than the first quarter, which had already been Tesla’s weakest quarter for deliveries in more than two years.
What makes the weakness stand out is that production wasn’t the problem. CEO Elon Musk had blamed first-quarter softness on factory shutdowns related to the Model Y ramp-up. But with plants running in the second quarter and inventories piling up, the issue is demand, not supply.
So, what’s behind Tesla’s delivery slump?
First, the lineup looks dated. Tesla hasn’t rolled out a truly new mainstream vehicle in years. Minor refreshes haven’t moved the needle, and the one fresh model, the Cybertruck, has struggled with its polarizing design and limited mass appeal.
Second, the competition has grown stronger and smarter. Tesla no longer holds a monopoly on desirable EVs. Rivals are launching models with modern features, sleek designs and competitive pricing.
And finally, there’s the “Musk factor.” The CEO’s online presence and political commentary are increasingly polarizing. For some consumers, Tesla as a brand has become inseparable from Musk’s persona — and not always in a good way. With so many EV options now available, buyers turned off by Musk’s behavior can easily look elsewhere.
Musk himself has cautioned that upcoming quarters will be rough. Tesla is expected to deliver fewer cars in 2025 than it did in 2024, marking a second straight year of decline. That’s a sharp reversal for a company that once promised 50% annual growth.
The financials paint the same picture. The last reported quarter brought Tesla’s steepest revenue drop in more than a decade. Automotive revenues, the core of the business, plunged due to falling deliveries and lower average selling prices. Margins also came under pressure, with the automotive gross margin narrowing to 17% and the operating margin falling to just 4.1%. Revenues dropped 12%, while expenses fell only 1%, exposing weakening efficiency.
Ford’s EV Reset Plan
Ford’s EV journey has also had its fair share of setbacks. The company entered the space with a splash in 2021, launching the Mustang Mach-E, then adding the F-150 Lightning and an electric van. However, as EV demand failed to surge as quickly as expected, raw material costs spiked and Tesla slashed prices aggressively, Ford’s EV unit started looking less appealing.
Losses have been steep. Over the past two and a half years, Ford’s EV division has racked up about $12 billion in red ink, including $2.17 billion in just the first half of this year. Sales have also stumbled. In the second quarter of 2025, Ford’s all-electric sales fell 31.4% year over year to 16,438 units. Safety recalls, stop-sales on the Mustang Mach-E and limited availability of the F-150 Lightning weighed heavily.
But unlike Tesla, Ford isn’t doubling down on the same strategy. It’s pivoting. The automaker is moving away from expensive, high-end EVs and shifting its focus toward affordability. The centerpiece of this new plan is the Ford Universal EV Platform, designed for a new family of lower-cost EVs.
The first model off this platform will be a midsize, four-door electric pickup priced around $30,000. Production will take place at the Louisville Assembly Complex in Kentucky, supported by a $5 billion investment. Deliveries are scheduled to begin in 2027.
Ford CEO Jim Farley has even likened this shift to a new “Model T moment.” Alongside this effort, Ford is delaying its larger EV truck and van programs until 2028 while doubling down on lithium iron phosphate (LFP) batteries. The company will be the first in the United States to assemble LFP packs domestically, which should lower costs and improve packaging efficiency.
The Universal Platform promises major production efficiencies. Ford says the design reduces parts by 20%, fasteners by 25%, and plant workstations by 40%. Assembly times are expected to improve by 15%. These savings are critical to hitting the $30,000 price target, especially given the EV policy under President Donald Trump.
TSLA vs. F: Price Performance & Valuation Comparison
Year to date, Ford shares have gone up 18%, while Tesla stock has declined roughly 16%.
Ford is trading at a forward sales multiple of 0.29, below its median of 0.31 over the last five years. Meanwhile, Tesla looks overvalued at a forward sales multiple of 10.58, which is also above its median of 8.21 over the last five years.
What Do Estimates for TSLA & F Say?
The consensus mark for Ford’s EPS has moved north over the past 60 days.
Meanwhile, the consensus estimate for TSLA’s EPS has moved south over the past 60 days.
Bottom Line
Choosing between Tesla and Ford for EV exposure comes down to what investors want — a premium brand with uncertain growth or a legacy automaker betting on scale and affordability. Tesla’s challenges reflect a company that is quickly losing its once-unshakable edge, with demand and pricing power slipping just as competition ramps up.
Ford, while still early in its reset, is laying the groundwork for a new phase in EV adoption. By focusing on cost efficiency, domestic battery production and a lineup of accessible models, Ford is positioning itself to capture buyers who have been priced out of the market so far.
For investors seeking exposure to the next wave of EV growth, we believe Ford offers a more grounded path than Tesla’s high-priced, slowing trajectory.
Tesla currently carries a Zacks Rank #4 (Sell), while Ford has a Zacks Rank #3 (Hold) now.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.