Ford Motor Co (NYSE:F) CEO Jim Farley didn't just question Tesla Inc's (NASDAQ:TSLA) approach to autonomy—he challenged the logic behind betting on it.
Speaking at the Aspen Ideas Festival, Farley said Alphabet Inc‘s (NASDAQ:GOOGL) (NASDAQ:GOOG) Waymo's lidar-based system makes more sense than Tesla's camera-only model, citing consumer trust and safety. But beneath the tech debate lies something even more jarring: Tesla's valuation is pricing in a robotaxi revolution that isn't here yet – and Ford just put that on blast.
Tesla's Vision, Ford's Caution
While Elon Musk is rolling out camera-only robotaxis in Austin, Ford's message is clear: lidar is a safety non-negotiable, and fully autonomous systems aren't viable – yet.
Farley even went so far as to say Ford gave up chasing Level 4 autonomy and instead is focused on "eyes-off" highway driving. Translation: we're going for realistic, not sci-fi.
Now Enter The Valuation Trap
Tesla is valued like it's already conquered autonomy:
| Company | Market Cap | Forward P/E | EV/EBITDA |
|---|---|---|---|
| Tesla | $1.02 trillion | 163.9x | 72.9x |
| Alphabet (Waymo parent) | $2.17 trillion | 19.1x | 14.0x |
| Ford | $50 billion | 6.7x | 10.3x |
Data Source: Benzinga Pro
Tesla trades at a forward P/E nearly 9x Alphabet's, and over 24x Ford's, yet the revenue impact from autonomy remains negligible. Tesla bulls argue the robotaxi future justifies the premium.
But if even legacy automakers like Ford are backing off full autonomy, that future may be farther out than markets want to admit.
Alphabet: The Underrated Value Play
While Farley prefers Waymo’s approach, Alphabet may be the real value winner. Waymo logs over 250,000 paid rides a week, operates commercially, and doesn't carry Tesla's pricing risk.
And Alphabet's core business still trades at less than 20x forward earnings.
Ford didn't just throw shade on Tesla's tech—it threw cold water on Tesla's valuation story. Robotaxis might be the future, but for now, Alphabet offers the smarter, cheaper, and more grounded ride.
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