Should Detroit Give Up on Electric Cars? 1 Big Investor Says Yes

Shares of electric-auto maker Tesla Motors (NASDAQ: TSLA  ) are up more than 5% after the stock got an upgrade from Morgan Stanley (NYSE: MS  ) . As a growing business, Tesla Motors can certainly use the bump, although there's no guarantee as to how (or whether) its strategy and weak points will improve as a result.

Tim Draper, one of Tesla Motors' high-profile investors, has said that Detroit's "Big Three" automakers should admit defeat on electric cars and leave that space to Tesla. Looking particularly at the success of the Ford Focus, though, this statement seems not only unfounded, but also quite naive.

See more in the following video.

Ford has been performing incredibly well as a company over the past few years -- it's making good vehicles, is consistently profitable, recently reinstated its dividend, and has done a remarkable job paying down its debt. But does Ford represent an incredible buying opportunity as it seems, or are there potential hidden risks that investors need to know about? To answer this, one of our top equity analysts has compiled a premium research report with in-depth analysis on whether Ford is a buy right now, and why. Simply click here to get instant access to this premium report.

Chris Hill and Jason Moser have no positions in the stocks mentioned above. Joe Magyer owns shares of General Motors. The Motley Fool owns shares of Ford and Tesla Motors. Motley Fool newsletter services recommend Ford, General Motors, and Tesla Motors . Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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  • Report this Comment On September 18, 2012, at 10:46 PM, mistacy wrote:

    Saying "the "Big Three" automakers should admit defeat on electric cars and leave that space to Tesla" is like saying all pc makers, all mp3 makers, all tablet makers, all smart phone makers should admit defeat & leave that space to Apple. This statement is ridiculous & has no place in a capitalist & "free" market environment. Competition is not only a positive thing for consumers but a positive thing for the makers. It keeps them on their toes to come up with better & more innovative products on a regular basis.

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