Which is better to invest in: BMW or Tesla?

Credit: bmwblog.com

Right now, the auto industry is very different from what it was even just a decade ago. Car companies fully admit that they’re making a switch from being auto manufacturers to being technology companies. Electric vehicles, autonomous driving and increased connectivity are dominating customer demands. This means that traditional automotive companies need to make a change and younger upstart companies almost have an edge. So investing can be a difficult choice: Do you go with the tried and true veteran car company or the plucky upstart with a ton of potential? This is the question The Motley Fool asks between BMW and Tesla.


BMW is the safer choice for sure. Regardless of what detractors may feel about the Bavarian brand’s efforts into the world of EVs, BMW is a brand that has had success for literally a century. It has a massive supply chain with quality pars and a proven track record, as well as experience in developing new technology and adapting to trends. You may not like BMW’s approach to EVs but, unless you’ve also run an automotive/technology company for one hundred years, it’s likely BMW knows better.



On the other hand, though, this is a new automotive landscape and a young upstart like Tesla, with fresh ideas and a new take, has a ton of potential. Tesla has been the most successful modern automotive upstart ever, with almost 100,000 vehicles sold last year. Admittedly, that’s nothing compared with the 2.37 million cars BMW sold in 2016, it’s far more than any other company its size and it’s growing. But that growth is incredibly slow, unproven and unreliable. Tesla has already had issues with its quality control and supply chains, with customers complaining about quality issues and difficulty getting their cars repaired. This scares investors.


Even though things are changing rapidly in the automotive industry, car giants like BMW, Mercedes-Benz and GM have proven that they can adapt and survive. They have the funds, resources, supply chains and power to create and become whatever they need to. Tesla, on the other hand, still needs to invest $3 billion to develop and build the upcoming Model 3 and it’s yet to be seen if the Silicon Valley-based brand will be able to do so in a timely enough fashion for the Model 3 to be a success.



If you’re an investor, BMW is clearly the stock to invest in as it’s far more predicable and reliable. Tesla has a ton of potential and could be the next Google or Amazon to invest in but it’s a risky move as the automotive industry is far slower-growing than any technology industry and already dominated by reputable brands. Not only is BMW’s stock better value, as it represents a far better price-to-sales ratio, but it’s the safer bet as well. But, don’t rule out Tesla as a high-ceiling company to invest in.


[Source: The Motley Fool]

The article Which is better to invest in: BMW or Tesla? appeared first on BMW BLOG




Top Stories

farawayyachtingcharters - Easy Branches
botoxfillerveintheraphyinphuket - Easy Branches

Latest in Lifestyle

VIDEO: Carwow drives the new Land Rover Discovery — BMW X5 might be in trouble

BMW’s X5 has always had to deal with the Land Rover Discovery (LR3 and LR4 in America for a time) but they weren’t ever really … The article VIDEO: Carwow drives the new Land Rover Discovery — BMW X5 might be in trouble appeared first on BMW BLOG
  • 6 hours ago

I desperately want this 1970 BMW 2800 CS

During the late ’60s and early ’70s, BMW built a few different cars on the E9 chassis. All of the were stunning cars. The first of … The article I desperately want this 1970 BMW 2800 CS appeared first on BMW BLOG
  • 6 hours ago

2018 BMW 640xi Gran Turismo will be available for US market in September

The successor of the BMW 5 Series Gran Turismo will arrive this summer and will be sold – for the first time- under the 6 … The article 2018 BMW 640xi Gran Turismo will be available for US market in September appeared first on BMW BLOG
  • 9 hours ago

G01 BMW X3 M40i to arrive at US dealers in October

In June, BMW will unveil the third generation of the highly popular X3 Sports Activity Vehicle. The G01 X3 will be extremely important for the … The article G01 BMW X3 M40i to arrive at US dealers in October appeared first on BMW BLOG
  • 10 hours ago

#QuickMick – Fahrschule Furious #2: Roundabout.

The second episode of the Mercedes-Benz car-com series Fahrschule Furious.
  • 14 hours ago

REPORT: Silver Arrows Seal Pole for Season-opener

Silver Arrows on top as Lewis Hamilton takes 62nd Formula One pole
  • 16 hours ago

WATCH: Exploring Melbourne with Lewis Hamilton

What does a Saturday morning in Melbourne look like for Lewis Hamilton? We rode along with the man himself to check out out some of his favourite spots
  • 23 hours ago

25 Small Kitchen Ideas That Make a Big Difference

The perfect photos to inspire you.
  • 1 day ago

Which BMW reliability issue is the most frustrating?

Most car enthusiasts aren’t rich folk. Most car enthusiasts have rather small budgets, even fans of expensive brands like BMW. There’s really no issue with … The article Which BMW reliability issue is the most frustrating? appeared first on BMW BLOG
  • 1 day ago

Elon Musk teases Tesla Model 3 on Twitter

As of right now, the Tesla Model 3 is still very much full of unknowns. We don’t really know what it’s going to be like … The article Elon Musk teases Tesla Model 3 on Twitter appeared first on BMW BLOG
  • 1 day ago

VIDEO: Carwow drives the new MINI Countryman

A little while back, we drove the new, second-generation MINI Countryman up in snowy Oregon and actually put the British brand’s more off-roading-oriented car to … The article VIDEO: Carwow drives the new MINI Countryman appeared first on BMW BLOG
  • 1 day ago