Stock Market Today With Jim Cramer: Tesla and ARK Invest

Jim Cramer discusses the latest stock market news including the takeover deal for Kansas City Southern, Cathie Woods' latest bets on Tesla and markets on Monday.
Author:
Publish date:

Stocks traded higher Monday and the Nasdaq posted solid gains as Treasury yields pulled back

TheStreet's Katherine Ross and Jim Cramer discussed breaking news in the stock market. Cramer spoke about the largest railroad takeover deal between Canadian Pacific and Kansas City Southern, Cathie Woods' latest bets on Tesla and markets on Monday.

Kansas City Southern: Buy Or Sell?

Shares of Kansas City Southern  (KSU) - Get Report jumped after railway group Canadian Pacific agreed to buy the railroad operator for $28.9 billion in a cash-and-shares deal including debt.

The largest takeover deal this year will create the first comprehensive US-Mexico-Canada railroad.

Cramer said this deal solidifies the Mexican car market with the United States.

Tesla: Buy Or Sell?

Shares of Tesla  (TSLA) - Get Report were higher after ARK Invest's Cathie Wood said she expected the EV maker's stock to hit $3,000 by 2025, more than four times its current price of $655.

At that price, the company would be valued at almost $3 trillion, based on the number of shares outstanding.

Ark sees a 50% chance of Tesla achieving fully autonomous driving within five years, which could allow the company to scale its planned robotaxi service quickly.

Cramer said if Wood expects Tesla to get to $3000 then there are going to be people who are going to buy it because she identified it early. "The younger people swear by her and the older people, who mostly don't know about her, are learning. I don't know if her long-term view will be matched by interest from the younger people."

Markets on Monday

Cramer said if interest rates on the 10-year Treasury bonds stay low, it will be a good day for industrial stocks, among others in the Action Alerts PLUS portfolio.

None of these are key holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stock? Learn more now.