Jim Cramer, the host of Mad Money, has been a sharp critic of Tesla and his CEO Elon Musk in the past. But since then, he has changed his mind.
The story of Jim's change began a few months ago. He was pleasant struck by the reaction of his daughter after she drove the Tesla Model 3. Some time later, after a test drive in Model X, Cramer's wife began to insist on buying a car. And a little later, thanks to his wife, Jim made an order for solar panels from Tesla.
Cramer admits that Tesla has a cult product, an great balance sheet and an excellent leader: "So, cult product? Check. Balance sheet? Check. Leader? Check." In the second half of December, during Mad Money, he publicly stated: "I don’t want you to own Ford. I want you to own the stock of Tesla."
“I don’t want you to own Ford. I want you to own the stock of Tesla”. Yes, you heard it right. These are the words from Jim Cramer 6 hrs ago. We’ve seen naysayers change tunes & become believers from Andrew Left to Kevin O’Leary. Added to the roster is Jim Cramer now. @elonmusk pic.twitter.com/S6X1GEeXDh— Ray4️⃣Tesla⚡️🚘☀️🔋 (@ray4tesla) December 18, 2019
Today, at "Squawk on the Street," right after it opened on Wall Street on Monday, when Tesla's shares rose more than 5% and exceeded 500 per share, Cramer praised Elon Musk, saying that he “the new face of an auto executive ”and praised the cars Tesla manufactures:“ Your car becomes an exciting, an exciting place to be. ”
Jim also commented on the fact that today Oppenheimer raised its target price to $612 per share. What, at the moment, makes Oppenheimer the largest bull among traditional Wall Street firms.
Cramer commented on the forecast “someone is going to come up with a $700 price target soon.” He added, “The bears really don’t know what to do. It’s an earnings story for heaven’s sake. ”
Cramer could not resist the success of Tesla. He praised the fact that in just 10 months the company was able to build the Gigafactory 3 in Shanghai and began to delivery cars to Chinese consumers.
In addition to his words, Cramer noted that he enjoys Tesla's car. He compared the in-car experience created by Tesla and Musk to a phrase used by former Starbucks CEO Howard Schultz, who likened the coffee shop to a “third place” between work and home. Only in the interpretation of Jim, the third place is the Tesla car.
“I love sitting in a Tesla.Tesla is the third place to be.”
Сramer also notes the fact that the Chinese government is extending subsidies for electric cars, which is great news for Tesla and recommends that analysts reconsider their forecasts.
China backing off from ending subsidies for electric cars-- Huge for Tesla; could raise numbers, $TSLA..— Jim Cramer (@jimcramer) January 13, 2020
Tesla numbers will go up because of China subsidy extension. Analysts need to raise numbers.. $TSLA— Jim Cramer (@jimcramer) January 13, 2020
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.