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TheStreet Open House

Cramer Won't Wait For Tesla

NEW YORK ( TheStreet --

Debra Borchardt:

It seems everyday we're getting good news about Tesla (TSLA - Get Report). Whether it's the earnings or Consumer Reports giving it almost a perfect score. Well, let's talk about Tesla. I'm with Jim Cramer. So Jim, you know, they came out with their quarterly earnings, definitely surprised the market.

Jim Cramer:


Debra Borchardt:

They delivered five thousand model S cars. The market was not expecting them to come in with profits and yet they did. The stock is becoming a trader favorite.

Jim Cramer:

Right. I mean a huge percentage of the stock is short. There are people who send me bulletins constantly about why I should tell people to sell Tesla and why I should tell them to short it. I don't communicate those because this is a cult stock and I don't want to mess with cult stocks. It was a very good conference call. They did make money. I am sure there are people who said they didn't make money.

They are going to build twenty one thousand cars. I'm sure there are people saying they can't build twenty one thousand cars but the bulls are winning the argument right now. One of the things I thought was interesting is the statistic, twenty five percent of people who test drive one buy one. I thought that was interesting and then Julia Boorstin, who's my colleague at CNBC, she and I were tweeting back and forth @JimCramer today and she says "Listen, in LA they're the predominate car among the glitz." and so you have a cult car and you have a cult stock and these are things that work to absurd heights. Because it has eight billion dollar market cap, Carl Quintinilla kept pointing out to me and I don't think it's worth eight billion but it doesn't really matter doesn't matter what I think.

Debra Borchardt:

You know, what's interesting too is there is clearly he (Tesla CEO Elon Musk) has so much faith in his product that he has offered the owners, that if they buy this car and finance it through Tesla, that in three years if they want to sell it back he'll give them fifty percent of their car value. That's just really unheard of and that really speaks volumes about how much he believes in his product.

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