Cramer has a new article out on his website The Street explaining why he’s become a Tesla bull. Here are some choice quotes:
No one, though, is more charismatic than Elon Musk. No one. He’s about, as they say in law school and nowhere else, about as sui generis as you can get. He’s a walking charisma machine, alternately entertaining and fun-loving and critical to the point of scathing, like someone else I know, yours truly. Sometimes I think he gives me a run for my money as the most sincerely insincere man in North America, other times he’s just a worldwide true believer.Real Money
This is quite the reversal from earlier in the year when Jim said the SEC should put Musk in prison.
About three months ago my eldest daughter got a chance to drive a Model 3 from Oregon to San Francisco. She had just sold her beat-up used Ford and had always been a definitive non-car person. I know she had trepidation about the battery and the 600-mile trip.
But within the first 100 miles she called me – that in itself exciting – to tell me how much she loved being behind the wheel of the darned thing. She’s never ever expressed even a whit of interest in a vehicle and now she’s bragging about it? I told her that I had driven one years ago and loved it but never thought much beyond that. She had two words for me: “buy one.” She ticked down all the features she liked, especially the wide screen, but nothing mattered more to her than the flatulence button, which she thought was hysterical.Real Money
Well, that’s just kids and their gadgets for you. No sensible adult would care about fart mode, right?
About two months later and I, too, found myself on the west coast, with my wife and a fabulous husband-and-wife couple, and they could not wait to put me in a Model X. My wife, Lisa, loves cars and she immediately was smitten. I have to admit I loved the whimsical nature and the handling. The gull wings were cool. The drive fantastic.Real Money
“But have you driven one” is a cliché, but people say it for a reason.
Then the company introduced the pick-up truck, which I thought was ugly as all get out, and some actor threw a rock at its unbreakable window and it cracked. I figured, okay, so much for that. Then we see the demand and it’s off the charts. That stunned me.Real Money
You and the rest of the American auto industry. They still don’t know what just hit them.
But then I checked in with one of the most skeptical CFOs in the world and you know what he said? The company could raise two billion dollars in a heartbeat.Real Money
This is what the Tesla bears missed all along: As long as you’re able to raise money, there’s no way you can go bankrupt.
Plus even the bears recognize that the company is about to have an earnings breakout, perhaps as soon as 2020.Real Money
If they recognize that they’re definitely not admitting it.
Remaining worry? That solar panel acquisition. Well, guess what? My wife sent me an article today about how their solar roof tiles are now as cheap as the stupid kind and they have a guarantee. She wants them. We will get them.Real Money
Damn, Cramer is really going all in!
So, cult product? Check. Balance sheet? Check. Leader? Check.Real Money
Welcome to the bull side, Cramer.
Jim Cramer has abandoned the dark side and become a Tesla bull. Read his explanation about what changed his mind on why he changed his mind about @Tesla and @elonmusk here:Tweet