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Wall Street thinks it might be time to sell Tesla and buy Ford (F, TSLA)

Wall Street thinks it might be time to sell Tesla and buy Ford (F, TSLA)

Ford raptor (1).JPG

  • Morgan Stanley analyst Adam Jonas boosted his target price for Ford to $15.
  • The carmaker has underperformed the markets amid a US sales boom.
  • Jonas recently also recommended that investors think about taking some profits from Tesla holdings.

The contrast is vivid: over the past three years, Tesla shares have risen 70% while Ford shares have declined 30%. In 2017, Tesla surpassed Ford’s market capitalization and now has the 100-plus-year-old carmaker out-valued by over $10 billion.

Ford, of course, has been steadily profitable for that period, although its margins haven’t lived up to expectations. Tesla, meanwhile, hasn’t made a dime and just last year blew through $3.5 billion in cash.

Figuring out what Tesla is truly worth is a fool’s errand, but Morgan Stanley analysts Adam Jonas seems to think that after the company’s big surge in 2017, some profit taking might be in order. He said as much in a recent research note. 

Tesla Detroit sales vs market cap

And in a note published Wednesday, he argued that Ford’s cheap stock price might represent a buying opportunity. He raised his target price to $15 (Ford is now at $11), his first bump up in over two years, and maintained that Ford could be a good bet going into 2018.

He likes the restructuring that CEO Jim Hackett has undertaken, and he thinks the carmaker’s core pickup-truck business will thrive in a US sales environment that could finish the year stronger than expected.

Ford popped higher in morning trading, up over 3%. Tesla slid lower by 2%, to $335.

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SEE ALSO: Tesla’s Model 3 production is reportedly nowhere near its target — but don’t expect it to hurt the company

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