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My take on Jim Cramer flip-flopping on TSLA

My take on Jim Cramer flip-flopping on TSLA

Cramer hated TSLA since IPO in 2010, in fact during IPO he dedicated part of his show to urge everyone to avoid TSLA, "SELL Block Material". Who he claimed was "sizzle without the steak". He was surprised that this would be a $1.5B company in 2010, now it's 10X that :)

During MadMoney "Lighting Rounds" Cramer always pounded on the SELL SELL SELL button when questioned...

I remember Elon making fun at NASDAQ of Cramer's comments saying he should stay focused Bear Stearns (who Cramer said BUY a few days before Bear folded), ouch! Think ever since those comments the two didn't love each other.

At one point in late 2012 Cramer compared TSLA to DMC, yes DeLorean Motor Company, seriously that's how he responded to my tweet.

Anyway, just amazing to see how he went from absolutely hating the stock to probably now loving it... My guess is that his fans started calling him out on his views and public pressure on this AMERICAN OEM is so great he finally had to change his mind, just like all those who shorted the stock finally had to throw in the towel.

Here you go: http://www.youtube.com/watch?v=6nYPhi0LwO0

Anyway, I actually like Cramer but he needs to own up to fact that he was dead wrong on TSLA.

JZ13 | May 31, 2013

Cramer advised today to NOT buy the stock. He's still a moron.

jk2014 | May 31, 2013

I think he's thinking short term returns. Doesn't want to look bad when it goes down for the next month or so. He'll change his position at that point. I think he's a convert, just doesn't want to say it on TV.

asblik | May 31, 2013

I think you could make the argument that TSLA has run too far too soon in the short term... and frankly I wouldn't buy the stock up here today either...

Remember roughly 5 institutions own about 55% of this stock, if any of those cash in on their long positions and new shorts enter up here there could be downward pressure.

--BUT-- My beef w Cramer was that he labeled Tesla as bad company, essentially a loser... which it certainly was not.

jk2014 | May 31, 2013

I think he doesn't think it's a loser. He'll never take back what he said in the early days, but he will start to look only at the stock movement technicalities. Secretly, he's watching every video, reading every forum comment in his spare time. His eyes are watering at 1am actually reading the most recent 10K on his ipad in bed under the covers so not even his wife will see.

By the end of the year, he'll tout the revolution of EVs on the auto industry. Just how it happens.

carlk | May 31, 2013

@jk2014

"I think he's thinking short term returns."

That's why he's right/wrong 50% of time like everyone else. No one can predict short term variation. No one.

olanmills | May 31, 2013

I think Tesla is one of those things where if you didn't know enough specifics, it's better to stay away. I mean, at a high level, especially before 2010, it just sounds risky. A company that is putting everything into one electric vehicle. One single product will make or break the company, and it's an EV, and they've never fully built a car before, and there are any number or reasonable arguments one could make circa 2009 (without knowing specifics about Tesla or their plan) about why it wouldn't work or why it wouldn't sell. Their Roadster made it to production, but they had plenty of bumps along the way and with such a tiny amount, again, at a high level, from outsiders, it really doesn't prove anything.

Hate would be too strong, but I certainly think it was reasonable for people to advise against buying Tesla prior to Model S deliveries. It was a start up with big risks.

drp | May 31, 2013

When you are short in say a charitable trust, you want the stock to drop....I'm just sayin'......