Ford (F) has been something of a topic for discussion lately, but less because of its ability to churn out American muscle and more for its new partnership with Tesla, which will bring Ford customers access to Tesla's Supercharging network.
The legacy automaker that personified American muscle cars with the Mustang has a market cap of $56 billion, several levels below (TSLA), which is nearing a $900 billion market cap. Ford is currently trading at around $14.
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Despite this, Jim Cramer, who spent Tuesday at Ford World Headquarters in Detroit, believes there is a lot of value in the company.
"Wall Street can be so dense sometimes, times like now when the market has spoken and it doesn't care for the likes of Ford because it only has eyes for Tesla," Cramer said on "Mad Money."
"The idea that there could be two auto companies worth investing in, one that's fully automated for electric vehicles and one that uses lots of humans to make iconic cars and trucks, is considered hazardous to your portfolio. I don't think that Ford and Tesla are mutually exclusive."
Cramer thinks Ford's potential value exceeds the boost it got from its partnership with Tesla and goes beyond the price of its shares or even a potentially "explosive" earnings report.
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"Do not get me wrong. Tesla, you can do that, too. We own the stock of Ford for the club. Why? Because I want value," Cramer said. "So far its only been okay, but from what I saw today, I think American ingenuity and innovation here at Ford are undervalued versus Tesla."
Cramer went on to cite some concerns he has with the continued narrowness of the market, which is still being predominantly bolstered by tech.
"Maybe that's what's wrong with this market," Cramer added. "It doesn't care about anything other than tech."
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