Cramer Won't Wait For Tesla

NEW YORK ( TheStreet --

Debra Borchardt:

It seems everyday we're getting good news about Tesla ( TSLA). 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:

Right.

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.

Jim Cramer:

Well it's also allowed him to take an, there's kind of an aggressive accounting stance you can take if you think the car's going to be worth certain amount later. I mean there's everything in the conference call but I urge people that are trading the stock to recognize that you're really trading a short squeeze and we don't know. Short squeezes are wild animals. So I mean at one point today people were using the Goldman report to get out of the stock. This is a stock that is not really a stock. Okay this is a poll. A referendum on a man and a car. I like companies like Ford ( F), that are real and General Motors ( GM) that are real. But I respect a short squeeze for what it can do and I also respect the man for what he's done.

Debra Borchardt:

I totally respect Elon Musk for, you know, one that he's done what a lot of people did not think could be done and there are a lot of failures in this area.

Jim Cramer:

Right.

Debra Borchardt:

Many of the roads to electric cars and the independent car world are littered with failures.

Jim Cramer:

Right.

Debra Borchardt:

So he has done something really special here.

Jim Cramer:

Yes and I've went to look at one of the Teslas and I liked it immensely but they told me that there was a nine month wait so I said no.

Debra Borchardt:

You didn't put your name on the waiting list?

Jim Cramer:

No. I think that nine months is an awful long time to wait for a car.

Debra Borchardt:

All right, but listen. Let me ask you this. If there weren't a nine month waiting list, if they said Mr. Cramer here's the keys and you can drive out now. Would you've had bought it?

Jim Cramer: Yes. Probably.

Debra Borchardt:

And there you go. So Tesla stock look at it. Be cautious about it because if you're looking at it, it really it might just be your just trading the short and not necessarily a pure play on the stock and that's Jim Cramer who could potentially be a future Tesla owner if there's no wait.

--Written by Debra Borchardt in New York.

>To contact the writer of this article, click here: Debra Borchardt.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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