Ford Motor Company (F), General Motors Company (GM): Which U.S. Automaker Is The Best Investment?

CEO Elon Musk also recently announced a “battery swapping” system for Model S cars, which will enable drivers to be back on the road in as little as 90 seconds (which is much quicker than filling up a gasoline tank). Musk commented on the system, stating that

“The only decision you need to make when you come to one of our Tesla stations is, do you prefer faster or free… Our goal here was to eliminate the objections that people have. We want to show that [Tesla] can actually be more convenient than a gasoline car. Hopefully this is what convinces people that electric cars are the future.”

The “faster or free” decision Mr. Musk is referring to is the result of the $50 fee drivers will need to pay to swipe out their battery instead of waiting an hour for a free charge. So while the convenience is there, the price still isn’t– unless gasoline prices skyrocket from their current levels.

The bottom line

While Tesla and the electric vehicle may be quite a threat further down the road, in the near term the traditional automobile is safe– for now. Sales have been picking up, and Ford and GM are two American automakers that are benefiting from an increase in car sales.

Ford has a stronger balance sheet and a strong financing arm that gives it an advantage over its competitor. Ford’s dividend also adds to its credentials as a solid investment, and the growth of this dividend has been impressive– doubling during its last announced increase.

Of the two, Ford seems like the better bet.

Joseph Harry owns shares of Ford. The Motley Fool recommends Ford, General Motors, and Tesla Motors . The Motley Fool owns shares of Ford and Tesla Motors.

The article Which U.S. Automaker Is The Best Investment? originally appeared on Fool.com and is written by Joseph Harry.

Joseph is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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