Wall Street veteran and Mad Money host Jim Cramer has noted that he likes Tesla. But while he is still supportive of the electric vehicle maker, Cramer admitted that he actually likes Ford more, especially at its current prices.
After being battered last year and ending 2022 with a 65% loss, Tesla has rebounded significantly this year. Year-to-date, TSLA shares have surged over 130%, and this has resulted in the electric vehicle maker gaining a market cap of more than $820 billion. That’s over 13 times the market cap of Ford.
After visiting Ford’s headquarters, however, Cramer noted that the spirit of innovation in the veteran automaker is still alive and well. This means that Ford is undervalued versus Tesla. Cramer also observed that there is “real value” in Ford, as noted in a Benzinga report.
“From what I saw today with my own eyes and what I’ve heard from CEO Jim Farley, I think American ingenuity and innovation here at Ford are undervalued, undervalued versus Tesla and possibly even everything else made in America,” Cramer said.
So far, Ford’s shares have also seen some momentum this year. The veteran automaker’s stock has climbed 28% in 2023, which is not bad but still lower than its highs back in January 2022. Cramer, for his part, noted that a revival for Ford stock is likely coming. The Wall Street veteran hinted that a potential upside of 67% is possible for the Detroit-based automaker.
“If I’m right about Ford, this stock could get back to its high of $25, where it was in January 2022,” Cramer noted.
The Mad Money host also estimated that if he is wrong in his prediction for Ford, the downside would not be much. This suggests that if he had to choose between Tesla and Ford, he would actually choose the latter. Cramer noted that these sentiments were notable, considering that he really likes Tesla.
“But if I’m wrong, I have to tell you, I think the downside — I’m calling it minimal. Investing is all about managing risk and reward. At these prices, I’ll take Ford over Tesla any day. And believe me, I like both,” Cramer said.
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