This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stock Under $10 that he thinks could potentially double or triple in the next 6 to 12-months. See what he's trading today with a 14-day FREE pass.

Cramer: 3 Things Needed to Kill a Cult

Editor's Note: This article was originally published at 3:21 p.m. EDT on Real Money on Aug. 5. To see Jim Cramer's latest commentary as it's published, sign up for a free trial of Real Money.

NEW YORK (Real Money) -- What does it take to stop a cult stock? What can reverse the price of Tesla (TSLA) or Netflix (NFLX) or Amazon.com (AMZN)?

First, it's harder than you think. These are stocks backed by products everyone loves. Last week I took a hard look at the new BMW electric car, the one that goes 100 miles on one tank, and I said it had none of the panache of the 180 miles-per-tank that the Tesla has. The fact that BMW's being branded as a city car leaves me cold, too. How many chargers are there in the city? The Tesla's a driving wonder. It is without a doubt the most sought-after car I have ever seen. Yet there are tons of nonbelievers everywhere.

When I was at the Delivering Alpha conference, a young buck kind of guy comes up to me and says he's just kiting, hasn't paid the fee for Delivering Alpha, he just wanted to see me about a job prospect. Some people remain under the delusion that I have a lot of jobs to give as I did a decade ago.

But I played along, even as I felt proprietary enough to almost want him thrown out, and I said, "give me your best idea." He said, "Short Tesla." First, I asked why. He said the sales numbers are inflated. I asked him whether he had ever tried to get one? He said, "No." I urged him to go to the Short Hills Mall dealership and try to get on the waiting list. He didn't know there was a dealer or a waiting list. Unimpressive. Then I asked him, "Have you ever driven one?" He said, "No." I was wide-eyed and said, "Why do you insult me with your lack of homework?" I am as miserable to arrogant professionals as I am nice to unsophisticated amateurs.

So he said that it was only a matter of time until the novelty wore off. I asked, "Do you know how many Teslas have been sold in Europe?" He had no idea. I said, "How about two? Is that novelty about to wear off?"

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
DOW 16,424.85 +162.29 1.00%
S&P 500 1,862.31 +19.33 1.05%
NASDAQ 4,086.2250 +52.0640 1.29%

Our Tweets

Brokerage Partners

Top Rated Stocks Top Rated Funds Top Rated ETFs