Ford Motor Company (NYSE:F) Might Dominate Tesla Inc (NASDAQ:TSLA) In The Long Run

Ford Motor Company (NYSE:F) Might Dominate Tesla Inc (NASDAQ:TSLA) In The Long Run

With U.S. auto sales set to top $1 trillion in 2017 Tesla Inc (NASDAQ:TSLA) is yet to have any significant impact on this market share. But with emergence of electric and autonomous vehicles, changing technology landscape this is all set to change. Tesla Inc (NASDAQ:TSLA) has currently crossed over 400,000 orders for its Model 3. Tesla Inc (NASDAQ:TSLA) is also at the verge of capitalizing the huge batteries and storage power solutions as the world pushes towards inevitable renewable energy.

Though Ford Motor Company (NYSE:F) has increased its dividends to $3.4 billion in 2016, Analysts predict a slowdown auto sales as trends shift towards electric cars. With market cap of $43.5 billion and 2016 free cash flow standing at $12.8 billion Ford Motor Company (NYSE:F) needs to take steps to address long term growth strategy. Ford Motor Company (NYSE:F) had earlier announced that it would be investing $700 million to upgrade it plant to meet production of high-tech electrified and autonomous vehicles by 2020.

For July Ford Motor Company (NYSE:F) sales were down by 7.5 percent. Legacy auto industries leaders are continuing to take toll as auto sales move from bad to worse. Both truck and car sales stood negative, with car sales continuing their down trend standing at 5.9% year on year, though sales continued their down trends from previous quarter, Ford profits stood at solid profits hit $2.0 billion in Q2.

Tesla Inc (NASDAQ:TSLA)is also lagging in terms of production infrastructure to meet its current high demand. TESLA Model 3s delivery is completely dependent on at what phase Tesla Inc (NASDAQ:TSLA) can ramp up its productions. Analysts currently expect 2017 revenue to stand at $11.37 billion which seems to be optimistic. TESLA is expected to reach production level of weekly 5000 vehicles from current 1,500 Tesla Model 3s in Q3.

Tesla Inc (NASDAQ:TSLA) Ford Motor Company (NYSE:F)
Tesla Inc (NASDAQ:TSLA)
Ford Motor Company (NYSE:F)

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