CNBC’s Jim Cramer mentioned Tuesday that many on Wall Road have all of it fallacious in relation to legacy automaker Ford.

“I feel there’s actual worth right here in Ford, extra worth than is captured by its $14 share value even with that 4.25% yield,” Cramer mentioned. “Do not get me fallacious, you have received my blessing to personal Tesla. Yeah, you are able to do that too, as a result of it is received unimaginable progress potential.”

Cramer mentioned he is chosen Ford over Tesla for CNBC’s Investing Membership as a result of he desires worth, and that is what he is seen all through his go to to the corporate headquarters in Dearborn, Michigan.

“To date it is solely been OK,” he mentioned of Ford’s inventory. “I feel American ingenuity and innovation right here at Ford are undervalued, undervalued versus Tesla and presumably even every thing else made in America.”

Cramer mentioned that a few of Ford’s success could also be beholden as to whether the Federal Reserve decides to implement extra price hikes. Buyers could really feel secure placing cash into an organization as previous and effectively often known as Ford, however Cramer warns its inventory will take successful by any Fed tightening.

As for Tesla, Cramer mentioned Wall Road treats it like a tech firm that will not be hit as laborious if the broader financial system suffers.

Maybe that situation is not truthful, Cramer mentioned, however he reminded viewers that in relation to managing a portfolio, it isn’t about “truthful” or “unfair.” As an alternative, he values firms and CEOs which can be in a position to adapt and switch a revenue in any setting.

“If I am proper about Ford, this inventory might get again to its excessive of $25, the place it was in January of 2022,” Cramer mentioned. “But when I am fallacious? I’ve to inform you, I feel the draw back — I am calling it minimal. That is proper, minimal. Investing is all about managing threat and reward. At these costs, I will take Ford over Tesla any day, and imagine me, I like them each.”

Join now for the CNBC Investing Membership to comply with Jim Cramer’s each transfer available in the market.

Disclaimer The CNBC Investing Membership Charitable Belief holds shares of Ford.