Nasdaq F Ford

Ford Motor Company (F) a global automobile company announced plans to ramp up investment in the Electrical Vehicle segment to a massive $30 billion by 2025. Shares jumped 8.6% to close at $13.90 on May 26.

As part of the Ford+ plan discussed at the investor day event, the company announced an increase in EV spending to $30 billion from the earlier stated budget of $22 billion.

The company projects 40% of its global vehicle sales to be all-electric by 2030, including the Mustang Mach-E, which accounts for approximately 70% of new sales, and the newly launched electric F-150 Lightning, which has around 70,000 customer reservations since its unveiling last week. (See Ford Motor stock analysis on TipRanks)

The event also saw the launch of Ford Pro, a vehicle services and distribution business dedicated to the high productivity requirements of commercial and government customers. Additionally, Ford hopes to have about 1 million vehicles that are capable of receiving over-the-air system updates on the road by the end of the current year. The company also provided a projected revenue forecast of $45 billion by 2025, and an adjusted EBIT margin forecast of 8% in 2023.

Ford’s CEO Jim Farley said, “I’m excited about what Ford+ means for our customers... We will deliver lower costs, stronger loyalty and greater returns across all our customers.”

Farley added, “This is our biggest opportunity for growth and value creation since Henry Ford started to scale the Model T, and we’re grabbing it with both hands.”

Following the company’s ramped-up electrification announcement, Wells Fargo analyst Colin Langan reiterated a Buy rating on the stock and said that the company’s EBIT forecast of 8% by 2023 is "a modest positive surprise," and added that he was happy with "still more positive EV surprises today with the 40% all-electric target by 2030 and increased EV spend" along with the other recent EV announcements.

The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 9 Buys, 5 Holds, and 1 Sell. The average analyst price target of $14.18 implies 2% upside potential to current levels. Shares have gained 130.5% over the past year.

Ford scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

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Dozens of workers staged a lunchtime sit-in protest on Thursday at Ford Motor Co's plant in India's Tamil Nadu state, demanding paid leave and health benefits, three sources familiar with the matter said, as the country battles the coronavirus.

Hyundai Motor Group will slash the number of combustion engine models in its line-up to free up resources to invest in electric vehicles (EVs), two people close to the South Korean automaker told Reuters.

The U.S. Senate Finance Committee advanced legislation on Wednesday that would boost electric vehicle tax credits to as much as $12,500 for EVs that are assembled by union workers in the United States.

(RTTNews) - Michigan-based auto giant Ford Motor Co. (F) is targeting to generate 40% of its sales through electric vehicles by 2030. For that, the company has decided to increase its investment in the project to $30 billion.

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

The stock market was generally strong on Wednesday, with a decided preference for more aggressive small companies over their larger counterparts. That was plainly obvious in how the Dow Jones Industrial Average (DJINDICES: ^DJI) and S&P 500 (SNPINDEX: ^GSPC) settled for small

U.S. stocks closed out Wednesday's session with modest gains as recent comments from Federal Reserve officials helped tamp down concerns about runaway inflation and kept bond yields in check.

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

U.S. stocks closed out Wednesday's session with modest gains as recent comments from Federal Reserve officials helped tamp down concerns about runaway inflation and kept bond yields in check.

U.S. stocks edged higher on Wednesday as recent comments from Federal Reserve officials helped tamp down concerns about runaway inflation and kept bond yields in check.

What happened Shares of Ford Motor Company (NYSE: F) were trading sharply higher on Wednesday, after the company shared details of its electric vehicle and profit growth plans at a morning-long event for investors and analysts.

U.S. stocks rose marginally on Wednesday after remarks from Federal Reserve officials helped ease worries about higher inflation, while a recent dip in bond yields supported tech-related stocks.

In early trading on Wednesday, shares of The Gap topped the list of the day's best performing components of the S&P 500 index, trading up 5.3%. Year to date, The Gap registers a 70.4% gain.

Brisbane, Australia-based Tritium agreed to go public in the United States through a merger with a blank-check firm, valuing one of the world's largest electric vehicle charging-station makers at $1.2 billion, the company said on Wednesday.

When Tesla (TSLA) in 2019 unveiled the "Cybertruck," an all-electric pickup truck, it looked as if they had gotten a jump on their rivals in that field. Now with GM (GM) releasing the Hummer EV and Ford (F) taking orders for the F150 Lightning, the market is looking crowded.

Wall Street's main indexes rose marginally on Wednesday after remarks from the Federal Reserve helped ease worries about higher inflation, while a recent dip in bond yields supported heavyweight tech-related stocks for a third straight session.

In a bid to boost the number of electric vehicles (EVs) it produces to 40% of its total by 2030, Ford (NYSE: F) announced today it would spend as much as $30 billion by 2025, some 36% above the $22 billion it previously committed to.

Wall Street's main indexes were set to rise on Wednesday after remarks from the Federal Reserve helped calm inflation worries, while a recent dip in bond yields supported heavyweight tech-related stocks for a third straight session.

The race for global EV supremacy is on, and growth investors have quite the range of options to choose from in the EV sector.

The adoption of EVs is set to continue to accelerate over time. The EV sector is expected to grow at a CAGR of 29% from 2021 to 2026. As such, growth investors have flocked to both Tesla (TSLA) and Nio (NIO) as the beneficiaries of this incredible growth catalyst.

Now, the question most investors have on their minds is: which company offers the best growth prospects? The answer really isn’t obvious. However, when looking at the core operations of both companies, it becomes clear that one indeed seems better than the other. (See Nio stock analysis on TipRanks)

China vs. USA

In some sense, the discussion of whether Tesla or Nio is a better investment at these levels comes down to an analysis of the company’s core markets.

Tesla operates in China, and Nio hasn’t really cracked the international markets thus far. In this regard, the choice may seem to be simple – Tesla is the frontrunner for global domination in the EV space.

However, recent events have cast some doubt on this thesis. U.S.-China relations have deteriorated rapidly during the Biden Presidency. Hopes of strengthening Sino-U.S. relations have been thwarted by what appears to be jockeying for global superpower status. Tesla has been caught in the crossfire in this political war of words.

China has recently clamped down on Tesla in a big way. A ban on Tesla ownership for government officials and employees of government-sponsored companies was recently expanded. A few days ago, the Chinese government announced that Tesla vehicles would be banned from government compounds and agencies. This is an escalation of a move that many believe could lead to Tesla’s market share becoming regulated out of China.

Accordingly, as the poster child for China’s booming EV sector, Nio stands to benefit. China currently holds approximately 41% of the global EV market share, compared to the U.S.'s market share of 2.4%. China’s market share number is actually expected to increase over the medium-term, given the rapid rate of EV growth in China (50% expected growth in 2021) relative to the U.S. and the rest of the world.

In this aspect, Nio looks highly attractive from a growth standpoint. Tesla CEO Elon Musk has previously commented that China will be the company’s biggest market. Now, these geopolitical concerns have poured a bucket of cold water on that idea. If Tesla is pushed out of China, Nio stands to reap the growth EV companies are jockeying for right now.

Tesla and Nio: Not Operating in a Vacuum

Both EV players have great business models, and both have shown market leadership in their respective core markets.

One can argue about which market is better. However, there’s also the pesky reality that competition in the EV space is likely to continue to heat up as traditional ICE vehicle manufacturers join the EV party.

The effect of that phenomenon was seen recently, when Ford (F) unveiled the F-150 Lightning. That entry into the EV market resulted in double-digit declines in other heavy-duty EV makers. Clearly, the idea that market share leads are impenetrable is quite asinine right now.

Both Tesla and Nio have steep competition in their core markets. Additionally, European players are stepping up with incredible offerings aimed at both American and Chinese buyers.

Indeed, modeling out both companies isn’t likely to be easy in the coming years. Competition could provide rapidly-changing inputs for both stocks in investors’ models.

What Analysts Are Saying About NIO Stock

According to TipRanks’ analyst rating consensus, NIO stock comes in as a Moderate Buy. Out of 10 analyst ratings, there are 7 Buy recommendations and 3 Hold recommendations.

As for price targets, the average analyst price target is $60.71. Analyst price targets range from a low of $38.80 per share to a high of $81.00 per share.

Bottom Line

If both Tesla and Nio become chess pieces used as pawns in a geopolitical regulatory war, there will certainly reason to be wary of owning Tesla right now. In contrast, Nio’s strong position in the hyper-growth Chinese market makes this stock extremely attractive today.

Both stocks are valued in the nosebleeds when it comes to valuation. Accordingly, investors will likely make their investment decisions on the basis of forward-looking growth assumptions. On this basis, Nio looks like a much better option right now.

Disclosure: Chris MacDonald held no position in any of the stocks mentioned in this article at the time of publication.

Disclaimer: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities.