The market wasn’t particularly impressed by the Tesla, Inc. (TSLA) second-quarter production numbers, and neither was rival Ford Motor Company (NYSE: F). Tesla and Ford are in a war of words, but analysts say the market will be the ultimate battleground.
Tesla CEO Elon Musk took a victory lap on Twitter on Sunday following Tesla’s big week. “7000 cars, 7 days [heart] Tesla Team [heart],” Musk wrote.
On Monday, Steve Armstrong, Ford’s president of its European, Middle East and Africa business, took the opportunity to take a jab at Tesla’s relatively small operation by replying to Musk’s tweet.
“7000 cars, circa 4 hours. [heart] Ford Team [heart],” Armstrong tweeted.
Tesla and Ford’s verbal feud started last week when Musk told the Wall Street Journal that Tesla’s factory has good energy compared to Ford’s factories.
“Go to Ford,” Musk said. “It looks like a morgue.”
Ford vice president of communications Mark Truby initially responded to Musk via Twitter, bashing the tent-like structure of the new Model 3 production line Tesla recently added.
“No doubt the vibe is funky in that ‘makeshift tent,’ but it’s not bad either across the street at the #FordRouge plant where a high quality, high-tech F-150 rolls off the line every 53 seconds like clockwork,” Truby said. He has since deleted the tweet.
Ford and its investors are likely frustrated with the fact that, despite Tesla’s modest size and production, the market has assigned a tremendous premium to its stock based on Tesla’s impressive growth. Tesla’s market capitalization is $56.8 billion, $13 billion larger than Ford’s. In addition, TSLA stock is up 24.2 percent in the past three years, while Ford stock is down 26.2 percent in that time.
Ford is currently in the process of restructuring its business with an eye to the future and a focus on trucks. CFRA analyst Efraim Levy says it may be a bumpy road for Ford, but the stock is a value at current levels for investors who can stomach the risk.
“While we are positive on improved efficiency to lower capital spending, we note…
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