Jim Cramer, the CNBC finance host with such bad takes they sparked an Inverse Cramer movement, has a new message for retail investors: Tesla screwed up its robotaxi launch, and now isn’t the time to go putting your money into Elon Musk’s no-longer-a-car company. Given Cramer’s history, this can only mean that Tesla is going to the moon, immediately, and forever.
Cramer had been looking forward to the robotaxi launch, and called the event “gorgeous” on CNBC. Yet, he was disappointed by the lack of specifics, and advised against putting more money into the stock right now. From CNBC:
“Even though Tesla’s robotaxi event was gorgeous, we didn’t get enough detail to justify treating this company like an autonomous driving business rather than an electric vehicle maker,” he said. “So, for now, I recommend taking a page from Switzerland and staying on the sidelines with this one.”
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While impressed by the look and concept of the robotaxi, Cramer said the event’s demonstration lacked substance and failed to prove its technological prowess. Musk provided few details about the actual costs of the vehicle, he added, and gave an “underwhelming” answer when asked about timing of the rollout.
By Friday’s close, Tesla stock was down 8.78%, and Cramer said the market’s reaction speaks for itself. While Tesla plunged, shares of Lyft and Uber rallied, with the latter hitting a new all-time high. The “existential threat” of robotaxis had weighed on the rideshare companies, but Wall Street doesn’t seem to be confident that Tesla’s Cybercab will be usable any time soon, he added.
Cramer’s excitement for the car means it may well be a flop, but his recommendation against investing means we could get more rallies in the months to come. In the long term, however, Cramer doesn’t recommend shorting Tesla — meaning the stock’s total collapse could still be on the horizon.
