Former hedge fund supervisor and present TV character Jim Cramer is not any stranger to controversial inventory market predictions, and his newest one will certainly elevate a couple of eyebrows.

The host of CNBC‘s “Mad Cash” present lately visited Ford Motor Firm’s headquarters and was impressed by what he noticed – a lot in order that he predicts Ford’s inventory might yield extra returns for buyers than Tesla, in accordance with Benzinga.

“From what I noticed right this moment with my very own eyes and what I’ve heard from CEO Jim Farley, I believe American ingenuity and innovation right here at Ford are undervalued, undervalued versus Tesla and probably even every thing else made in America.”

Cramer mentioned he believes that there is “actual worth” in Ford, whose shares at the moment commerce at round $15. Ford shares (F) have gained 28 p.c in 2023 however are nonetheless down fairly a bit from final 12 months’s excessive. Cramer is assured {that a} wonderful revival is looming.

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“If I am proper about Ford, this inventory might get again to its excessive of $25, the place it was in January 2022,” he mentioned. With Ford shares at the moment buying and selling at $14.95, Cramer’s prediction implies a possible upside of 67 p.c.

He mentioned that even when he is fallacious, the draw back is “minimal,” and if he had to decide on between Ford and Tesla, he would haven’t any second ideas about it. “Investing is all about managing threat and reward. At these costs, I am going to take Ford over Tesla any day. And consider me, I like each,” he mentioned. Tesla is at the moment buying and selling at simply over $260.

That is a daring wager from Cramer seeing as Tesla shares (TSLA) surged 137 p.c thus far this 12 months, giving the corporate a market capitalization of over $800 billion – greater than 13 occasions that of Ford Motor Firm. 

That makes Tesla the most popular automotive inventory available in the market by far, although the EV maker didn’t take pleasure in a simple 2022 on the inventory market. The corporate ended final 12 months with a 65 p.c share worth loss, which was partially attributable to CEO Elon Musk promoting billions of {dollars} value of Tesla inventory to fund his acquisition of Twitter.