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Morning Bell With Jim Cramer: Tesla Is Right to Raise Capital

Jim Cramer shares insights about the impact of vaccine rollout on Disney, Tesla’s capital raise, and homebuilding stocks.

Dow futures resume rally, with record highs in sight for Wall Street, amid renewed optimism on stimulus talks and coronavirus vaccine progress.

In the last episode of Mad Money, Jim Cramer said that the buyers may be young, but they've got the edge on Wall Street. Cramer continued his focus on the younger investors that have been fueling the stock market's run to new highs.

TheStreet's Katherine Ross and Cramer are talking about the impact of vaccine rollout on Disney, Tesla’s capital raise, and homebuilding stocks.

Disney Stock: Buy or Sell?

Last month, Walt Disney  (DIS) - Get Walt Disney Company Report said it plans to lay off a total of 32,000 employees by the end of March, a further reduction in its workforce as the Covid-19 pandemic and severe drop-off in visitors to its theme parks continues to slam its business.

The layoffs, revealed in a Securities and Exchange Commission filing on Wednesday, are 4,000 more than the 28,000 job cuts announced in September.

Cramer said that we have to understand that a vaccine glut is nirvana for a company like Disney.

Tesla Stock: Buy or Sell?

Tesla  (TSLA) - Get Tesla Inc Report slipped from its record high Tuesday after the clean-energy carmaker said it would sell around $5 billion worth of shares as it prepares for its S&P 500 debut later this month.

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Tesla unveiled the 'at-the-market' offering in a Securities and Exchange Commission that followed data from the China Passenger Car Association showing Tesla shifted 21,604 China-made vehicles in the world's largest car market last month, nearly double the October total and well ahead of the 11,329 sold in September, thanks in part to a resurgence in consumer demand from the COVID-hit economy.

Cramer said that Tesla will probably be up. The younger people have a different view about capital raise than the older people and they see this as positive because it will allow Tesla to build all plants without taking in more debt.

He added that Tesla is taking advantage of the fact that people keep buying it up and that they need the money to build the plant in Austin and expand in other destinations.

“We have to accept the fact that they know how to use the money,” he said.

Lennar Stock: Buy or Sell?

In November, Lennar Corporation  (LEN) - Get Lennar Corporation Class A Report said that it will establish an Upstate new home community- Bird Quarry, a new market serving South Carolina. The new project will be located at Greer, South Carolina, and include ranch homes and open-concept floor plans that range from 1,800 to 2,798 square feet, with two to four bedrooms and two to three bathrooms.

Cramer said that he favors Lennar Corporation as a homebuilding stock over Toll Brothers, adding that Toll Brothers is not “tempting” for him now.

Walt Disney Co. a key holding in Jim Cramer's Action Alerts PLUS charitable trust. Want to be alerted before Jim Cramer buys or sells any stock? Learn more from Cramer and his membership team now.