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Better EV Stock: Ford vs. Tesla

Lee Samaha, The Motley Fool

Sat, Jun 21, 2025, 3:05 PM 6 min read

-The comparison between Ford (NYSE: F) and Tesla (NASDAQ: TSLA) is valuable and valid because it speaks to where the auto industry is headed and highlights the relative position of each company as it moves toward electric vehicles and robotaxis. Whether it's a legacy automaker (Ford) or a dedicated battery electric vehicle company(Tesla), the key opportunities and challenges are the same. So, which company is better placed to thrive in the future?

Tesla's launch of its full-self-driving (FSD) robotaxi is sometimes seen as a tactical move as its electric vehicle (EV) sales and market share come under pressure in 2025, but nothing could be further from the truth. The reality is that major automakers, including Ford, and leading technology companies have invested billions in robotaxis and autonomous driving, and it's an integral part of the future of the auto industry.

The reason behind the investment is a recognition that robotaxis have huge profit potential, not least because they offer a long stream of recurring income from ride-per-mile revenue.

Another reality is that EVs are not cheap, and if they are the future of the auto industry, automakers need to make them more affordable. They also need to offer robotaxis to make mobility more affordable.

However, don't take my word for it. Here's Ford's CEO Jim Farley in 2019 on autonomous driving and robotaxis: "The self-driving system is incredibly important to develop, but it's just one part of building a safe and scalable self-driving service that consumers can trust." Farley went on to outline a timeline for a "commercial self-driving service" in 2021, which Ford would fail to achieve.

As for affordable EVs, last year, Farley reiterated the need to offer smaller and more affordable EVs to achieve profitability as an EV maker.

The two things are strongly connected. You can't have robotaxi EVs if the vehicles aren't affordable. That's a point that resonated during a recent CNBC interview with Waymo, which has a robotaxi service already in place, yet co-CEO Tekedra Mawakana declined to outline a timeline for the company's profitability. Waymo's lack of profitability means its owner, Alphabet, is going to have to invest significant sums, at a loss, if it wants Waymo to build scale. That creates a huge opportunity for a company like Tesla that is just entering the market and potentially offers a much more commercial and scalable service.

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