Jim Cramer says he’s betting on Ford but still thinks Tesla is a buy

Jim Cramer: 'I don't think Ford and Tesla are mutually exclusive'

Many on Wall Street are wrong about traditional automakers, CNBC’s Jim Cramer said Tuesday ford.

“I think there’s real value in Ford, and even with a 4.25% yield, it’s worth more than the $14 share price implies,” Cramer said. “Don’t get me wrong, you’ve got my blessing tesla. Yes, you can too, as it has incredible growth potential. “

Cramer said he chose Ford over Tesla for CNBC’s investment club because he wanted value, and that’s what he saw during a visit to the company’s headquarters in Dearborn, Mich.

“So far so good,” he said of Ford’s stock. “I think Ford’s American creativity and innovation are undervalued, and they are undervalued compared to Tesla and even other American-made products.”

Ford’s success may depend in part on whether the Fed decides to implement more rate hikes, Cramer said. Investors may feel safe putting money into a company as old and well-known as Ford, but Cramer warned that any tightening by the Fed would hit the company’s stock.

As for Tesla, Cramer said Wall Street sees it as a technology company that wouldn’t be hit as hard if the broader economy were affected.

Maybe the situation isn’t fair, Cramer said, but he reminded viewers that it’s not a question of “fair” or “unfair” when it comes to managing portfolios. Instead, he looks for companies and CEOs who can adapt and profit in any environment.

“If I’m right about Ford, the stock could go back to the January 2022 high of $25,” Cramer said. “But if I’m wrong? I have to tell you, I think the negative The impact is minimal. Yes, minimal. Investing is all about managing risk and reward. At these prices, I’d take over a Ford Tesla any day, and believe me, I love them both.”