EV Price War: Ford’s Advantage Over Tesla Is Its Legacy ICE Sector


  • As Tesla, Inc. slashes EV prices in an effort to gain more market share in the high-end EV market, others like Ford Motor Company are rising to the challenge by cutting EV prices as well.
  • The biggest difference between the financial impact that this will have on Tesla versus Ford is that the EV models for which prices are cut make up a small portion of total vehicle sales.
  • While Ford’s legacy ICE sector tends to be far more cyclical which makes it a liability currently within the context of a global economic slowdown, it can help finance the price war.
  • Tesla by contrast is set to feel the negative effects of declining profit margins across the board.
  • With its stock price declining, Ford is increasingly a buy, while Tesla’s stock price has moved away from reasonable valuation territory after a very brief encounter with it, which makes it a sell.

Man inserts a power cord into an electric car for charging in the nature


Investment thesis: Within the context of a slowing global economy this year, Ford Motor Company (NYSE:F) is likely set to perform poorly, given that its still-dominant ICE-powered (internal combustion engine) vehicle segment is highly cyclical, in contrast to the Tesla, Inc. (

EV sale price, 2015, versus 2022 Europe, North America & China

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Global car sales by year


Ford versus Tesla yearly sales 2019-2022

Tesla, Ford

Tesla stock and technical metrics

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Ford stock and technical metrics

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Disclosure: I/we have a beneficial long position in the shares of F either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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