Investor's Corner
What happened to Jim Cramer’s love affair with Tesla and Elon Musk?
Jim Cramer’s love affair with Tesla and Elon Musk appears to be over, based on recent comments the long-time Mad Money host has made in the past few months. Cramer flipped from bear to bull on Tesla stock several years ago following a drive in his daughter’s Tesla, essentially becoming one of the company’s most outspoken supporters. However, Cramer has moved on from his bullish Tesla outlook.
Recently, Cramer’s overwhelming support for Tesla started to crumble after he stated that the Cybertruck would be Musk’s “first disaster.” Instead, Cramer told car buyers to look at the all-electric F-150 Lightning from Ford, the automaker’s battery-powered version of the United States’ best-selling pickup truck. The F-150 Lightning is set to begin deliveries next Spring.
While purchasing a vehicle based on aesthetics is purely up to the consumer, there is no evidence to suggest that the Cybertruck will be a disaster at all, especially in terms of interest. In fact, the Cybertruck has already accumulated over 1.2 million pre-orders. Even if 50% of those orders are unfulfilled based on pure speculation, that would still make the Cybertruck one of the most popular vehicles in the country. The most popular vehicle in the United States is the Ford F-Series, which sold 787,372 units in 2020, according to GoodCarBadCar.
Earlier today, Cramer made another bold statement regarding who he would rather put his trust in between Musk and Ford CEO Jim Farley. His choice would certainly not appease Tesla fans by any measure, as Cramer stated he would much rather have Farley than Musk.
Jim Farley is undoubtedly a credible CEO, with a proven record of success thus far. He has supported Ford’s transition to electrification, and the company’s stock price has soared since he assumed the role of CEO in October 2020. While Farley has been a supporter and crutch for Ford’s transition away from combustion engines, he is not as innovative or revolutionary as Musk, and there isn’t much of a comparison based on what the two men have done in their careers as CEOs.
In a matter of months, Cramer has gone from perhaps the biggest Elon fan and supporter to relatively no trust or enthusiasm regarding Tesla or its products. One can only ask: What’s the reason for this?
The flip on Cramer’s view was drastic and uncharacteristic of someone who has supported Tesla and been a very vocal bull for several years. Here are some of the things that Cramer has said about Tesla as recently as May 2021:
May 2021: Elon Musk states Tesla will halt Bitcoin transactions due to environmental concerns
“I don’t know why the hell he said it. I don’t know whether there was another objection besides the environmental, because the environmental [reason] 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.”
Tesla’s Bitcoin reversal confuses Jim Cramer, but he’s not giving up on Elon Musk
January 2021: Musk’s contribution to Tesla’s valuation
“If you don’t have any, you can still buy some. Don’t buy a lot, but you can certainly still buy some. The roadmap is clear, Elon, every time he talks, it’s going to be good, and I just think we all have to accept the fact that President Biden will do anything to make the EV to be the central form of transport.”
“Every time Elon opens a new market, like he is about to do with his factory in Berlin, the stock will go up again. It’s really a question of whether you believe in iterations.”
Tesla still a ‘Buy’ to Jim Cramer: ‘Everytime [Elon] talks, it’s going to be good’
September 2020: Battery Day critics just didn’t get it
“They’re [critics] just bummed that the things they hyped didn’t happen.”
“Tesla rolls out a plan to create an electric car for the masses and greeted with a yawn because Musk didn’t roll out a magic battery…That’s what happens when you let expectations get out of control.”
Tesla (TSLA) shares snatched up by ARK after Battery Day: “It’s going to be hard to catch up”
While many critics of Cramer’s simply claim he has changed his $TSLA position, or that he is supporting ICE-based automakers, there is no evidence of this yet. However, Cramer’s sudden flip on Tesla is interesting, and only he knows why he has chosen to openly ditch the efforts of the electric car company that is undoubtedly leading the charge.
Investor's Corner
Tesla wins $508 price target from Stifel as Robotaxi rollout gains speed
The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.
Tesla received another round of bullish analyst updates this week, led by Stifel, raising its price target to $508 from $483 while reaffirming a “Buy” rating. The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.
Robotaxi rollout, FSD updates, and new affordable cars
Stifel expects Tesla’s robotaxi fleet to expand into 8–10 major metropolitan areas by the end of 2025, including Austin, where early deployments without safety drivers are targeted before year-end. Additional markets under evaluation include Nevada, Florida, and Arizona, as noted in an Investing.com report. The firm also highlighted strong early performance for FSD Version 14, with upcoming releases adding new “reasoning capabilities” designed to improve complex decision-making using full 360-degree vision.
Tesla has also taken steps to offset the loss of U.S. EV tax credits by launching the Model Y Standard and Model 3 Standard at $39,990 and $36,990, Stifel noted. Both vehicles deliver more than 300 miles of range and are positioned to sustain demand despite shifting incentives. Stifel raised its EBITDA forecasts to $14.9 billion for 2025 and $19.5 billion for 2026, assigning partial valuation weightings to Tesla’s FSD, robotaxi, and Optimus initiatives.
TD Cowen also places an optimistic price target
TD Cowen reiterated its Buy rating with a $509 price target after a research tour of Giga Texas, citing production scale and operational execution as key strengths. The firm posted its optimistic price target following a recent Mobility Bus tour in Austin. The tour included a visit to Giga Texas, which offered fresh insights into the company’s operations and prospects.
Additional analyst movements include Truist Securities maintaining its Hold rating following shareholder approval of Elon Musk’s compensation plan, viewing the vote as reducing leadership uncertainty.
@teslarati Tesla Full Self-Driving yields for pedestrians while human drivers do not…the future is here! #tesla #teslafsd #fullselfdriving ♬ 2 Little 2 Late – Levi & Mario
Investor's Corner
Tesla receives major institutional boost with Nomura’s rising stake
The move makes Tesla Nomura’s 10th-largest holding at about 1% of its entire portfolio.
Tesla (NASDAQ:TSLA) has gained fresh institutional support, with Nomura Asset Management expanding its position in the automaker.
Nomura boosted its Tesla holdings by 4.2%, adding 47,674 shares and bringing its total position to more than 1.17 million shares valued at roughly $373.6 million. The move makes Tesla Nomura’s 10th-largest holding at about 1% of its entire portfolio.
Institutional investors and TSLA
Nomura’s filing was released alongside several other fund updates. Brighton Jones LLC boosted its holdings by 11.8%, as noted in a MarketBeat report, and Revolve Wealth Partners lifted its TSLA position by 21.2%. Bison Wealth increased its Tesla stake by 52.2%, AMG National Trust Bank increased its position in shares of Tesla by 11.8%, and FAS Wealth Partners increased its TSLA holdings by 22.1%. About 66% of all outstanding Tesla shares are now owned by institutional investors.
The buying comes shortly after Tesla reported better-than-expected quarterly earnings, posting $0.50 per share compared with the $0.48 consensus. Revenue reached $28.10 billion, topping Wall Street’s $24.98 billion estimate. Despite the earnings beat, Tesla continues to trade at a steep premium relative to peers, with a market cap hovering around $1.34 trillion and a price-to-earnings ratio near 270.
Recent insider sales
Some Tesla insiders have sold stock as of late. CFO Vaibhav Taneja sold 2,606 shares in early September for just over $918,000, reducing his personal stake by about 21%. Director James R. Murdoch executed a far larger sale, offloading 120,000 shares for roughly $42 million and trimming his holdings by nearly 15%. Over the past three months, Tesla insiders have collectively sold 202,606 shares valued at approximately $75.6 million, as per SEC disclosures.
Tesla is currently entering its next phase of growth, and if it is successful, it could very well become the world’s most valuable company as a result. The company has several high-profile projects expected to be rolled out in the coming years, including Optimus, the humanoid robot, and the Cybercab, an autonomous two-seater with the potential to change the face of roads across the globe.
@teslarati Tesla Full Self-Driving yields for pedestrians while human drivers do not…the future is here! #tesla #teslafsd #fullselfdriving ♬ 2 Little 2 Late – Levi & Mario
Investor's Corner
Ron Baron states Tesla and SpaceX are lifetime investments
Baron, one of Tesla’s longest-standing bulls, reiterated that his personal stake in the company remains fully intact even as volatility pressures the broader market.
Billionaire investor Ron Baron says he isn’t touching a single share of his personal Tesla holdings despite the recent selloff in the tech sector. Baron, one of Tesla’s longest-standing bulls, reiterated that his personal stake in the company remains fully intact even as volatility pressures the broader market.
Baron doubles down on Tesla
Speaking on CNBC’s Squawk Box, Baron stated that he is largely unfazed by the market downturn, describing his approach during the selloff as simply “looking” for opportunities. He emphasized that Tesla remains the centerpiece of his long-term strategy, recalling that although Baron Funds once sold 30% of its Tesla position due to client pressure, he personally refused to trim any of his personal holdings.
“We sold 30% for clients. I did not sell personally a single share,” he said. Baron’s exposure highlighted this stance, stating that roughly 40% of his personal net worth is invested in Tesla alone. The legendary investor stated that he has already made about $8 billion from Tesla from an investment of $400 million when he started, and believes that figure could rise fivefold over the next decade as the company scales its technology, manufacturing, and autonomy roadmap.
A lifelong investment
Baron’s commitment extends beyond Tesla. He stated that he also holds about 25% of his personal wealth in SpaceX and another 35% in Baron mutual funds, creating a highly concentrated portfolio built around Elon Musk–led companies. During the interview, Baron revisited a decades-old promise he made to his fund’s board when he sought approval to invest in publicly traded companies.
“I told the board, ‘If you let me invest a certain amount of money, then I will promise that I won’t sell any of my stock. I will be the last person out of the stock,’” he said. “I will not sell a single share of my shares until my clients sold 100% of their shares. … And I don’t expect to sell in my lifetime Tesla or SpaceX.”
Watch Ron Baron’s CNBC interview below.
@teslarati :rotating_light: This is why you need to use off-peak rates at Tesla Superchargers! #tesla #evcharging #fyp ♬ Blue Moon – Muspace Lofi
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