

Investor's Corner
Tesla’s Bitcoin reversal confuses Jim Cramer, but he’s not giving up on Elon Musk
Tesla’s reversed outlook on accepting Bitcoin has made plenty of people scratch their heads, including Jim Cramer, a Tesla investor and Elon Musk supporter. On a live stream of his Stock Market Breakdown with Katherine Ross, Cramer says that Tesla’s and Musk’s reasoning for not accepting Bitcoin any longer doesn’t make sense. However, Cramer’s confusion isn’t causing him to give up on Tesla or Musk quite yet. “He does a lot of things that I can’t fathom that turn out to be brilliant.”
On Wednesday, Musk Tweeted a statement indicating that Tesla would no longer be accepting Bitcoin as a payment method for its products. Citing environmental concerns, Musk and Tesla remained supportive of Bitcoin and Cryptocurrencies in general. However, according to the statement, mining rigs are powered by fossil fuels, especially coal, and Tesla would be willing to accept another Cryptocurrency that uses less than 1% of Bitcoin’s energy per transaction.
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
— Elon Musk (@elonmusk) May 12, 2021
The statement confused many people, including those who hold prevalent positions in the world of investing. One of the confused parties was Barstool founder Dave Portnoy. Portnoy and Musk have had a favorable relationship in the past. Musk even donated to Barstool’s Small Business Fund in January that accumulated $20 million to help small-time companies in America. Portnoy was critical of Tesla’s decision and pledged not to “flip-flop” over Bitcoin. “You will have to rip my bitcoin from my cold dead hands,” Portnoy added.
Unlike @elonmusk I am not flip flopping every other second about #bitcoin. You will have to rip my bitcoin from my cold dead hands
— Dave Portnoy (@stoolpresidente) May 12, 2021
Cramer’s Criticism
Cramer was critical of Musk’s decision and is curious as to what the reasoning is behind the decision. While Musk detailed the environmental concerns, Cramer doesn’t seem to believe that it is the only reason for the decision. “I don’t know why the hell he said it,” Cramer questioned during the show. “I don’t know whether there was another objection besides the environmental, because the environmental doesn’t hold water. It’s been this way the whole time. But he chose to do this, and I don’t get it. But, he does a lot of things that I can’t fathom that turn out to be brilliant.”
It is absolutely possible that Tesla’s decision to accept Bitcoin, an announcement made in March, could have been based on its recent $1.5 billion investment into the Crypto in December 2020. Non-sustainable sources generally power mining rigs, but it does come down to what individual miners choose to utilize as their power source. Cryptos can be mined using clean and environmentally friendly energy. As solar power and other forms of clean energy generation become more popular, the amount of energy used from fossil fuels per transaction will decrease.
Cramer, who was not an Elon Musk supporter several years ago, flipped his stance on Tesla after his daughter convinced him to buy a vehicle after driving one. Since then, Cramer has been vocally supportive of Tesla, Musk, and the stock, holding high hopes and expectations for the company in the coming years.
Musk’s change of heart regarding Bitcoin could have been a simple reversal on the decision. While we do not know whether other factors were involved, Tesla’s ultimate goal is to transition the world to sustainable energy in an accelerated manner, and Bitcoin mining could have gone against what the company stands for. There is no indication that Tesla will scrap Bitcoin altogether, but mining efforts need to become more sustainable in the coming years for Tesla to reconsider accepting the Cryptocurrency.
Cramer’s comments regarding Tesla and Bitcoin can be seen in the video below.
Disclosure: Joey Klender is a Tesla stockholder but does not own any Bitcoin and has no intention of initiating any positions within the next 72 hours.
What do you think about Tesla’s decision? What do you think about Cramer’s comments? Let us know in the comments or reach out to me directly at joey@teslarati.com.
Investor's Corner
Tesla could save $2.5B by replacing 10% of staff with Optimus: Morgan Stanley
Jonas assigned each robot a net present value (NPV) of $200,000.

Tesla’s (NASDAQ:TSLA) near-term outlook may be clouded by political controversies and regulatory headwinds, but Morgan Stanley analyst Adam Jonas sees a glimmer of opportunity for the electric vehicle maker.
In a new note, the Morgan Stanley analyst estimated that Tesla could save $2.5 billion by replacing just 10% of its workforce with its Optimus robots, assigning each robot a net present value (NPV) of $200,000.
Morgan Stanley highlights Optimus’ savings potential
Jonas highlighted the potential savings on Tesla’s workforce of 125,665 employees in his note, suggesting that the utilization of Optimus robots could significantly reduce labor costs. The analyst’s note arrived shortly after Tesla reported Q2 2025 deliveries of 384,122 vehicles, which came close to Morgan Stanley’s estimate and slightly under the consensus of 385,086.
“Tesla has 125,665 employees worldwide (year-end 2024). On our calculations, a 10% substitution to humanoid at approximately ($200k NPV/humanoid) could be worth approximately $2.5bn,” Jonas wrote, as noted by Street Insider.
Jonas also issued some caution on Tesla Energy, whose battery storage deployments were flat year over year at 9.6 GWh. Morgan Stanley had expected Tesla Energy to post battery storage deployments of 14 GWh in the second quarter.
Musk’s political ambitions
The backdrop to Jonas’ note included Elon Musk’s involvement in U.S. politics. The Tesla CEO recently floated the idea of launching a new political party, following a poll on X that showed support for the idea. Though a widely circulated FEC filing was labeled false by Musk, the CEO does seem intent on establishing a third political party in the United States.
Jonas cautioned that Musk’s political efforts could divert attention and resources from Tesla’s core operations, adding near-term pressure on TSLA stock. “We believe investors should be prepared for further devotion of resources (financial, time/attention) in the direction of Mr. Musk’s political priorities which may add further near-term pressure to TSLA shares,” Jonas stated.
Investor's Corner
Two Tesla bulls share differing insights on Elon Musk, the Board, and politics
Two noted Tesla bulls have shared differing views on the recent activities of CEO Elon Musk and the company’s leadership.

Two noted Tesla (NASDAQ:TSLA) bulls have shared differing views on the recent activities of CEO Elon Musk and the company’s leadership.
While Wedbush analyst Dan Ives called on Tesla’s board to take concrete steps to ensure Musk remains focused on the EV maker, longtime Tesla supporter Cathie Wood of Ark Invest reaffirmed her confidence in the CEO and the company’s leadership.
Ives warns of distraction risk amid crucial growth phase
In a recent note, Ives stated that Tesla is at a critical point in its history, as the company is transitioning from an EV maker towards an entity that is more focused on autonomous driving and robotics. He then noted that the Board of Directors should “act now” and establish formal boundaries around Musk’s political activities, which could be a headwind on TSLA stock.
Ives laid out a three-point plan that he believes could ensure that the electric vehicle maker is led with proper leadership until the end of the decade. First off, the analyst noted that a new “incentive-driven pay package for Musk as CEO that increases his ownership of Tesla up to ~25% voting power” is necessary. He also stated that the Board should establish clear guidelines for how much time Musk must devote to Tesla operations in order to receive his compensation, and a dedicated oversight committee must be formed to monitor the CEO’s political activities.
Ives, however, highlighted that Tesla should move forward with Musk at its helm. “We urge the Board to act now and move the Tesla story forward with Musk as CEO,” he wrote, reiterating its Outperform rating on Tesla stock and $500 per share price target.
Tesla CEO Elon Musk has responded to Ives’ suggestions with a brief comment on X. “Shut up, Dan,” Musk wrote.
Cathie Wood reiterates trust in Musk and Tesla board
Meanwhile, Ark Investment Management founder Cathie Wood expressed little concern over Musk’s latest controversies. In an interview with Bloomberg Television, Wood said, “We do trust the board and the board’s instincts here and we stay out of politics.” She also noted that Ark has navigated Musk-related headlines since it first invested in Tesla.
Wood also pointed to Musk’s recent move to oversee Tesla’s sales operations in the U.S. and Europe as evidence of his renewed focus in the electric vehicle maker. “When he puts his mind on something, he usually gets the job done,” she said. “So I think he’s much less distracted now than he was, let’s say, in the White House 24/7,” she said.
TSLA stock is down roughly 25% year-to-date but has gained about 19% over the past 12 months, as noted in a StocksTwits report.
Investor's Corner
Cantor Fitzgerald maintains Tesla (TSLA) ‘Overweight’ rating amid Q2 2025 deliveries
Cantor Fitzgerald is holding firm on its bullish stance for the electric vehicle maker.

Cantor Fitzgerald is holding firm on its bullish stance for Tesla (NASDAQ: TSLA), reiterating its “Overweight” rating and $355 price target amidst the company’s release of its Q2 2025 vehicle delivery and production report.
Tesla delivered 384,122 vehicles in Q2 2025, falling below last year’s Q2 figure of 443,956 units. Despite softer demand in some countries in Europe and ongoing controversies surrounding CEO Elon Musk, the firm maintained its view that Tesla is a long-term growth story in the EV sector.
Tesla’s Q2 results
Among the 384,122 vehicles that Tesla delivered in the second quarter, 373,728 were Model 3 and Model Y. The remaining 10,394 units were attributed to the Model S, Model X, and Cybertruck. Production was largely flat year-over-year at 410,244 units.
In the energy division, Tesla deployed 9.6 GWh of energy storage in Q2, which was above last year’s 9.4 GWh. Overall, Tesla continues to hold a strong position with $95.7 billion in trailing twelve-month revenue and a 17.7% gross margin, as noted in a report from Investing.com.
Tesla’s stock is still volatile
Tesla’s market cap fell to $941 billion on Monday amid volatility that was likely caused in no small part by CEO Elon Musk’s political posts on X over the weekend. Musk has announced that he is forming the America Party to serve as a third option for voters in the United States, a decision that has earned the ire of U.S. President Donald Trump.
Despite Musk’s controversial nature, some analysts remain bullish on TSLA stock. Apart from Cantor Fitzgerald, Canaccord Genuity also reiterated its “Buy” rating on Tesla shares, with the firm highlighting the company’s positive Q2 vehicle deliveries, which exceeded its expectations by 24,000 units. Cannacord also noted that Tesla remains strong in several markets despite its year-over-year decline in deliveries.
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