Tesla Maintains Momentum Amid Sell-Off: Comparing with Ford and General Motors

The automobile industry has encountered significant fluctuations in 2025, especially following President Donald Trump‘s announcement about potential tariffs affecting Canada and Mexico. This has raised questions on how various companies within the industry, particularly Tesla, Ford, and General Motors, are performing amidst these economic pressures.

Tesla's Performance: Tesla Inc. (TSLA) is recognized as the largest automobile manufacturer globally by market capitalization. Despite a challenging start to 2025, where it experienced a decline of over 50% after reaching record highs in December 2024, Tesla remains a focal point in market discussions. The company’s stock surged more than 100% before the recent downturn.

Notably, even in this tumultuous period, Tesla enjoys a degree of momentum relative to its competitors. According to ratings based on value, momentum, and growth, Tesla achieves an 82nd percentile score for momentum. Its performance over the past year shows a 29% increase, which contrasts with its recent declines.

Despite its strong momentum rating, Tesla’s value assessment is relatively low. The stock is currently trading at 109 times its earnings and an astonishing 207 times free cash flow, which suggests that the market perceives it as expensive compared to earnings.

Insights on Ford and GM: In juxtaposition to Tesla, stalwart U.S. automakers Ford Motor Co. (F) and General Motors Co. (GM) present opportunities for value investment. Ford ranks significantly higher than Tesla in terms of perceived value, holding a 91st percentile rating. Investors are currently pricing Ford stock at a modest 6.82 times earnings, which could reflect favorable macroeconomic conditions for the company.

General Motors stands out as a potential hidden gem within the domestic automotive landscape. With strong ratings across all three evaluation categories, GM not only boasts an appealing value assessment but also shows positive momentum, with its stock rising 22% over the last year.

In conclusion, while Tesla remains a compelling player in the market with notable momentum despite its sell-off, Ford and General Motors present attractive value propositions. The landscape of the automotive industry continues to evolve as companies navigate economic uncertainties sparked by political actions.

Tesla, Ford, GM