Why Jim Cramer Changed His Mind About Tesla Stock

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Jim Cramer wasn't always bullish on Tesla  (TSLA) - Get Report. In fact, in 2019, he was in a pretty public feud with Elon Musk, who "belittled" Cramer at a dinner party and then tweeted "Cramer is a simulation." But in an interview with Tesla Daily Maven Rob Maurer, Cramer explains how he went from disliking the company to loving it, in what he calls a "religious conversion."

Cramer says two main realizations changed his mindset on Tesla: first, his daughter drove in a Tesla and raved about the experience. Cramer said that she'd never cared about cars before, but something about the vehicle stuck with her. Cramer took note. (His wife then drove in a Tesla, and loved it too).

Second, Cramer realized that Tesla's balance sheet wasn't an issue -- the company, Cramer says, can raise all the money it needs and more.

"And I've been pounding the table ever since," recalled Cramer.

“I should have realized along the way that when Jay Leno told me, 'Jim, this is the greatest car company I know'… I should've just changed my mind…. Why am I fighting the truth? Why am I fighting progress? So, Rob I surrendered, and it was the best call I've made this year.”

Tesla's stock has been on a hot streak, with the company now commanding a market cap north of $350 billion.

Watch Cramer's full conversation with Tesla Daily's Rob Maurer here. 

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