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Old 03-05-2020, 12:05 AM   #1 (permalink)
ME_Andy
Growin a stash
 
Join Date: Jun 2014
Location: Austin TX
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What is the best buy right now? Ford, GM, Tesla

I'm curious what everybody thinks the best stock to buy is between these 3. I think Tesla has the best future but it's too expensive for me to touch anymore. It's priced at something like 4x more than Ford.

Ford and GM have nice dividends (8% and 4%). Some of the downsides are that both companies barely made a profit last quarter. I think GM even lost money due to a union strike. The unions have basically neutered these companies in the USA. Ford probably won't be able to keep that dividend so high in the near future. If GM or Ford doesn't come out with a good E-truck, I could see bankruptcy in their future.

Ford's Mach E looks pretty good but I don't think they'll be able to compete with the Cybertruck on price.

GM's battery day was a little bit disappointing to me. It's good that they're investing in a big way and starting to reduce Cobalt in the batteries because it's so expensive. But, Tesla has already been doing that for a couple years. I think Tesla's battery day will be at the next level. I would be surprised if Tesla doesn't reveal a million-mile battery.

I like Tesla's approach to autonomy a little bit more for reasons I don't really want to get into here. It's not the right crowd. But, I think all three companies have a legitimate shot at Level 5 autonomy.

So, my question is, which stock would you buy? Let's normalize against Tesla:

- Tesla costs $1 and pays zero dividend
- GM costs 33¢ and pays 1¢ per year
- F costs 25¢ and pays 2¢ per year

I think I would buy Ford, but the prudent side of me says to hold off until they release the specs on their electric F150. Just to see if it's in the same ballpark as the Cybertruck.

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