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Despite being a listed company for nearly seven decades, Ford (F) stock is barely in double digits. In this article, we’ll discuss why Ford's stock is trading so low, and whether Tesla (TSLA) is to blame for the company’s woes.
To begin with, let’s look at the difference between a low stock price and a cheap stock, as the nuanced differences between these two categories can often be confusing. When we talk about a “low stock price,” it's in reference to the absolute share price, and not a measure of valuation. For instance, Ford’s stock price is low on an absolute basis - compared not only to Tesla but also to its Detroit rival General Motors (GM).