Cramer Warns Investors Not To Lock Funds In TSLA For Long

In his Stop Trading! on Monday, Cramer repeated his advice that traders should invest into the public offering of Tesla Motors TSLA, but refrain from locking their funds in the stock for a long time. Cramer said, “You want to get some on the deal and then get out. I think it’s going to be a bad company.” According to Reuters, TSLA, which makes electric cars, has not generated profits so far. The company has itself commented that it can only turn profitable if it starts selling large volumes of Model S sedan, which costs $50,000. Reuters pointed out further that Tesla has sold only 1,000 of its $109,000 Roadsters so far. Cramer said that investors wanting to invest in an automotive IPO should consider the upcoming deal by General Motors, which is “a real business.” With the The New York Times stating that President Obama is rooting for a substantial increase in the wireless spectrum for commercial use, Cramer advises traders to invest in American Tower AMT and Ciena CIEN. Jim also pointed out in the show that although investors are shunning housing and housing related stocks, a Wells Fargo report has indicated that Williams Sonoma WSM is seeing strong momentum this quarter. Read more on Jim Cramer.