Jim Cramer Slams Tesla, Google-Parent Alphabet Sellers, Says Anyone Who Listened To Conference Calls 'Knows These Companies Are Doing Extremely Well'

The sell-off in the shares of Tesla, Inc. TSLA and Alphabet, Inc. GOOGL GOOG did not go down well with CNBC Mad Money host Jim Cramer. He aired his view on the sell-off through a series of posts on the social-media platform X, owned by Tesla CEO Elon Musk.

What Happened: Tesla shares fell about 9% and Google-parent Alphabet over 4% in premarket trading. Commenting on the stock moves, Cramer said, “Wonder if any of the sellers of Google or Tesla actually listened to the conference calls last night because anyone who did knows these companies are doing extremely well.”

“It is ALL zeitgeist and an attempt to get CEOs to say they are spending too much on AI,” he added.

I wonder if any of the sellers of Google or Tesla actually listened to the conference calls last night because anyone who did knows these companies are doing extremely well. It is ALL zeitgeist and an attempt to get ceos to say they are spending too much on AI

— Jim Cramer (@jimcramer) July 24, 2024

Tesla is ramping up efforts to bring its full self-driving technology to fruition. Just after the earnings call, Musk ran a poll on whether Tesla should invest $5 billion in his xAI venture.

Alphabet hinted at an acceleration in its capital spending plans to stay ahead of the rest of its AI peers. Deepwater Asset Management’s Gene Munster said the company runs the risk of losing its grip on the future if it doesn’t grow CapEx at a 70%+ rate.

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Tesla Poses Triple Threat: Tagging Musk, Cramer said he loved the quarter because “it shows you will be the leader in self-drive AND robotics AND grid electric flow.” “Triple threat man!” he added.

Cramer expressed his optimism concerning the electric vehicle maker in a separate post. “I know that Tesla’s stock is down in after hours but, holy cow, what a terrific conference call: tutorial on autonomy, humanoids, batteries…really impressive,” he said.

Not many may buy into this argument as critics questioned the valuation of the stock amid the earnings miss and sizeable benefit bestowed by the zero emission-vehicle credit, which is one-time in nature.

Sell-offs Motive: Cramer said the sell-off has a mind of its own. While there was nothing wrong with Google’s results, Tesla has a lot of things going for it that no one cares about now but will matter years down the road, he said.

“A lot of this selloff has to do with the endless desire to get the small-cap v. Mag 7 nonsense going,” he said, adding “It’s just supposed to be this giant shift of money out of Mag 7 into the small-cap. It’s ‘the’ hot flavor narrative.”

He also recommended against moving money out of mega-caps and artificial intelligence into “lousy” small-caps that “aren’t worth nearly as much as we are going to take them to.”

The iShares Russell 2000 ETF IWM, which tracks the small-cap focused Russell 2,000 Index, fell 0.50% to $221.52 in premarket trading, according to Benzinga Pro data.

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