Both General Motors and Ford have launched their electric vehicles, and Cramer believes that they stand as rivals for existing EVs. GM plans to have 30 EV models on the road by 2025.
American television personality and CNBC’s Mad Money Jim Cramer recommended holding Ford Motor Company (NYSE: F) and General Motors (NYSE: GM) stocks over the likes of Tesla Inc (NASDAQ: TSLA) and other electric vehicle (EV) companies.
Cramer noted his recommendation on owning stocks in Ford and General Motors while speaking on his Mad Money show on the 15th of March. He referred to Ford and General Motors as less risky stocks to buy considering the current market status. At the moment, prominent names in the automotive industry are correcting after surging in the past year.
While speaking, Cramer said:
“If you want to bet on electric vehicles with much less risk, I say buy some Ford or General Motors. Despite their internal combustion engine bones, they’ve got meaningful exposure and, just as important, they fit the current moment in a way that Tesla or the SPACs simply don’t.”
CNBC said in a report that Tesla is beginning to lose its command in the EV space across the US. According to research conducted by Morgan Stanley (NYSE: MS), there are now more carmakers who have also launched their electric products. Morgan Stanley also said that domestic sales of electric vehicles grew 34% in February year-over-year. In the same period, the firm said Tesla’s market share has dropped to 69%.
Both General Motors and Ford have launched their electric vehicles, and Cramer believes that they stand as rivals for existing EVs. GM plans to have 30 EV models on the road by 2025.
At the time of writing, MarketWatch data showed that Tesla stock is down 0.96% to $701.17. TSLA has surged 695.31% in its one-year record and increased by 0.32% since the year began. In the last three months, the EV company has risen 10.65% and has advanced 25.74% in the last five days.
Cramer on Ford and General Motor Stocks
On the other hand, Ford and General Motors have only been recording gains over the past year. Ford surged 163.47% over the past year and more than 50% in its year-to-date record. The company has gained 44.26% in the last three months and an additional 14.38% over the past month. Also, Ford spiked more than 5% in the last five days. Ford stock is currently at $12.71 which means that it is down 3.64%.
At press time, General Motors stock is at a trading price of $57.43, a 0.83% loss in comparison to its last close of $57.94. General Motors stock has grown more than 185% in a year and about 39% in its year-to-date record. In the last three months, the automaker has advanced 39.08% and has seen a further gain of 8.38% over the past month. In the last five days, GM has climbed 6.02%.
Cramer commented further:
“These are huge, established companies with improving balance sheets and real earnings, earnings that happen to be skyrocketing right now.”
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Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.
