Jim Cramer Reacts After Tesla Stock Plummets 5% On Tuesday Amid China Delivery Woes: 'It Was Magnificent'

Jim Cramer, the host of CNBC’s “Mad Money,” has weighed in on Tesla Inc.’s TSLA recent stock performance, which has seen a significant decline.

What Happened: On Tuesday, Tesla’s stock took a hit, falling by almost 5%. The dip was attributed to weak shipment numbers in China and a temporary shutdown of the company’s German factory. This has resulted in a 27% year-to-date decline for the electric vehicle (EV) manufacturer, reported CNBC on Tuesday.

Cramer, who had earlier in 2024 suggested that Tesla be removed from the elite group of “Magnificent Seven” stocks, said, “It was magnificent.”

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Why It Matters: Tesla recently faced production halts and price hikes in China. These issues, coupled with a diminishing demand for EVs in the U.S., have led to a significant decline in Tesla’s stock value and raised concerns about its future performance.

CEO Elon Musk‘s $56 billion pay package is also currently under scrutiny. Some shareholders have written to the Delaware Court of Chancery in support of Musk, arguing that the nullification of his 2018 compensation package would not be financially beneficial to them.

Additionally, the company’s energy storage business has been touted as the next big revenue driver, as its core EV manufacturing business faces a downturn. However, analysts have questioned the merits of this thesis, with some pointing out that the value of Tesla’s battery assembly business is significantly inflated.

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