Jim Cramer has gone full-on Tesla (NASDAQ: TSLA) bull, and it seems like there is no turning back. In a recent article, Cramer shared some of his insights about the electric car maker and wondered why—despite its recent rise—TSLA stock wasn’t trading higher.
Cramer posted his thoughts in an article on The Street, stating that people today seemed like they were dumbfounded ever since Tesla’s market cap started closing in on being comparable to the market caps of Ford and GM combined. This is a massive accomplishment for Tesla, considering that the company is a newcomer in the auto industry, and it is still mastering the art of mass-producing high-volume vehicles.
For Cramer, however, the bigger question here—despite the stock hitting as high as $479 per share on Wednesday’s intraday—was why TSLA shares weren’t trading higher. According to Cramer, the current market thrives on growth, and Tesla happens to have that in spades. Unfortunately, Tesla’s competitors, like GM and Ford, don’t.
“I am dumbfounded, too, dumbfounded about why Tesla's not up even more than it is. This is a market that thrives on growth. Tesla has it in spades. GM doesn't have much at all, and Ford is actually on the decline,” Cramer wrote.
The Mad Money host also took note of Tesla’s budding business in China, which is poised to make a lot of headway with the start of mass deliveries of the Made-in-China Model 3. Tesla recently handed over the first China-made Model 3 to local customers yesterday, and Elon Musk attended the event.
“Tesla's got a growth business in China to beat the band, while Ford's China business is in trouble, and GM's seems almost static to me. The fact that Elon Musk did a jig last night is being viewed as something that's cocky, hilarious even. Who can blame the guy? He built that plant that can produce 150,000 cars in 10 months. Ford and GM would be struggling to get a similar plant open in 18 months,” Cramer added.
After spending years as a Tesla skeptic, it appears that Jim Cramer, is finally seeing the company for what it really is: a disruptor that is nowhere near its full potential, and one that can very well upend the heart of the automotive industry.
As companies like GM and Ford seemingly drag their feet in electrification, and as the Model 3 continues to prove that there is a real demand for premium all-electric vehicles, it appears that Cramer’s sentiments may very well be proven right. Perhaps soon, Tesla can really rise even more.
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