Jim Cramer Breaks Down Tesla's Margins

Jim Cramer breaks down a Sanford C. Bernstein & Co. analyst who said the gross margins on Telsa's (TSLA) - Get Report Model S need to be really good to justify the valuation of the stock. He said it needs to be north of 25.

Cramer went to mention others who say the Tesla's convertible is a good bet. 

There is a lot of momentum to this heavily shorted stock and questioned whether it is a tech stock like Amazon (AMZN) - Get Report . 

Jim Cramer and the AAP team are discussing fallout from first-quarter earnings from Apple (AAPL) - Get Report and Facebook (FB) - Get Report and how to play the big tech names. Get his insights or analysis with a free trial subscription to Action Alerts Plus.