Former hedge fund manager and current TV personality Jim Cramer is no stranger to controversial stock market predictions, and his latest one will definitely raise a few eyebrows.
The host of CNBC's "Mad Money" show recently visited Ford Motor Company's headquarters and was impressed by what he saw – so much so that he predicts Ford's stock may yield more returns for investors than Tesla, according to Benzinga.
"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 he believes that there's "real value" in Ford, whose shares currently trade at around $15. Ford shares (F) have gained 28 percent in 2023 but are still down quite a bit from last year's high. Cramer is confident that a glorious revival is looming.
"If I'm right about Ford, this stock could get back to its high of $25, where it was in January 2022," he said. With Ford shares currently trading at $14.95, Cramer's prediction implies a potential upside of 67 percent.
He said that even if he's wrong, the downside is "minimal," and if he had to choose between Ford and Tesla, he would have no second thoughts about it. "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," he said. Tesla is currently trading at just over $260.
That's a bold bet from Cramer seeing as Tesla shares (TSLA) surged 137 percent so far this year, giving the company a market capitalization of over $800 billion – more than 13 times that of Ford Motor Company.
That makes Tesla the hottest automotive stock in the market by far, even though the EV maker did not enjoy an easy 2022 on the stock market. The company ended last year with a 65 percent share value loss, which was in part attributable to CEO Elon Musk selling billions of dollars worth of Tesla stock to fund his acquisition of Twitter.
