Cramer says one of the keys to Tesla is the confidence that Musk exudes about how many cars he can sell. Cramer says this is important because the casual investor wins out over the rigors of the skeptical analysts who don't think Tesla can reach Musk's numbers.
Cramer calls Tesla a cult stock and says the investor optimism is trumping the analyst skepticism. He says this is what happens with cult stocks and says you can't game them using the four walls of a spreadsheet.
Cramer adds that it's irrelevant if he thinks Tesla stock will go higher because the cult wants it to rise.
The stock was up 4.72% to $241.88 at 2:18 p.m. on Thursday.
TheStreet Ratings team rates Tesla as a "hold" with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate TESLA MOTORS INC (TSLA) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and generally higher debt management risk."
- You can view the full analysis from the report here: TSLA Ratings Report