Jim Cramer’s love affair with Tesla stock (NASDAQ: TSLA) appears to be continuing. The former Tesla skeptic turned supporter and host of CNBC’s Mad Money recently suggested that TSLA stock is a prime candidate for buying right now.
In an interview with The Street, Cramer talked about TSLA’s strength, along with CEO Elon Musk’s suggestions that the valuation was too high.
“Tesla’s good,” Cramer said. “Look, Elon has every right to write what he did. Tesla would be at $1,000 if the Germans didn’t fight the plant, if China didn’t have COVID first, if the ‘fascists,’ as he calls them, didn’t make his (factory) close in California. So I totally understand why he thinks it is too expensive because he doesn’t like the regulation,” he added.
Musk’s displeasure with stay-at-home orders in CA caused him to speak out against them during the company’s Q1 2020 earnings call last week, where he stated that people should have their freedoms. Musk then took to Twitter on Friday and solidified his discontent with the Fremont factory’s closure, among other things.
California Governor Gavin Newsom has stated that soft reopenings of some businesses will take place on Friday, and Tesla’s Fremont facility may be among those that qualify due to its designation as a manufacturing plant.
While Cramer understands Musk’s discontent, he said he still believes the stock is favorable compared to others. “I, on the other hand, just say ‘Look, Tesla is great.’ He may want to have the stock come down for whatever reason, or he’s just an honest purveyor of angst about how he could be doing so much better, which he could be.”
After Musk’s take on the stock being too highly-priced, TSLA dropped from $755 to $700 but rebounded on Monday. Currently, TSLA’s value per share sits at around $766 following the release of higher price targets from several financial firms.
Cramer was a vocal disbeliever in Tesla several years ago. After openly criticizing the company’s moves and product line, Cramer has become one of Tesla’s most prominent advocates. He owns a Tesla Model X and has the company’s solar products powering his house. However, what is most impressive about his stance with Tesla is that Cramer stated in late January 2020 that he was completely done investing in fossil fuels.
“I’m done with fossil fuels; we’re done. We’re starting to see divestment all over the world. We’re starting to see companies and big pension funds say, ‘We’re not going to own them anymore,'” Cramer said.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.
