Follow us today...
Tesla stock has its share of Uber bulls and Perma bears. The stock is one of the most highly shorted stocks in the NASDAQ while at the same time being one of the best-performing high-cap stocks in the past five years.
Regarding Tesla, it’s either exuberant optimism or complete cynicism without room for more nuanced opinions.
Here’s the CyberRoadster – A 2 Door Tesla Sports Car With Model 3 Components & Cybertruck Styling @Tesla @elonmusk #Tesla https://t.co/ORtjRsuTL9
— Torque News (@torquenewsauto) February 12, 2024
Throughout his long career as a financial commentator, although he has gone back and forth regarding his opinion on Tesla, one of the people who has been highly bearish on the stock has been Jim Cramer.
The famous CNBC Mad Money host has made some notable predictions regarding Tesla stock, famously saying during the IPO that, let alone buy the stock, he wouldn’t even rent it and recommending his viewers sell, sell, sell.
This was when Tesla had less than one hundredth the market capitalization that it currently enjoys. Cramer has also advised his viewers to sell Tesla shares at inflection points throughout the company’s significant growth waves.
Due to this fact and other significant blunders throughout his storied career, including his famous rant in support of Bear Stearns ahead of the bank's collapse and hailing Sam Bankman-Fried as a visionary ahead of FTX collapse, investors have devised an online index fund named “Inverse Cramder.”
Simply put, inverse Cramer advises you to invest the opposite of what the CNBC talk show host recommends, and by doing precisely the opposite of what he suggests, investors have been able to beat the returns of the S&P 500.
Given the widespread sentiment of inverse Cramer investing, Tesla shareholders have started to become jubilant every time the talk show host says something negative about Tesla.
Elon Musk’s “Armored Personnel Carrier from the Future” is Here as a Tesla Cybertruck Gets Fitted With Tank Threads Instead of Tires @Tesla @elonmusk
-https://t.co/sn5yLcxBNR
— Torque News (@torquenewsauto) February 9, 2024
His most recent pessimistic prediction about Tesla stock was a source of celebration even Elon Musk pilled on with excitement.
However, with so many people tracking inverse Cramer, the investing tool appears to be no longer working.
On December 21, 2023, Cramer said 2024 would be awful for Tesla stock; fast forward a few weeks, and Tesla stock has gone down 25%, wiping more than $100 billion in value.
Some dismissed this, saying, “Even a broken clock is right twice daily.” However, on February 5, 2024, Cramer said $180 dollars is the bottom for Tesla stock, and since then, the EV maker is up 5%.
Whatever is going on, it appears that blindly going the opposite direction to Cramer’s prediction is no longer a profitable investing strategy.
Currently, Cramer is bang on when it comes to his short-term Tesla prediction. However, we’ll keep in touch with the CNBC host and update you on his latest Tesla thesis.
Until then, make sure to visit our site, torquenews.com/Tesla, regularly for the latest updates.
So what do you think? Are you surprised to see the CNBC host predicting Tesla’s short-term stock move with this much accuracy? Going forward, are you more likely to go with Cramer or Inverse Cramer for your Tesla investing guide? Let us know your thoughts in the comments below.
Image: Screenshot from CNBC Television
For more information, check out: Here’s the CyberRoadster – A 2 Door Tesla Sports Car With Model 3 Components & Cybertruck Styling
Tinsae Aregay has been following Tesla and The evolution of the EV space on a daily basis for several years. He covers everything about Tesla, from the cars to Elon Musk, the energy business, and autonomy. Follow Tinsae on Twitter at @TinsaeAregay for daily Tesla news.
Follow us today...
