Tesla Inc. TSLA investors and CEO Elon Musk are now wary about the future performance of the stock after Jim Cramer put it on the list of 8 companies that he thinks could join the “trillion dollar stock club.”
What Happened: CNBC “Mad Money” host and former hedge fund manager Cramer on Wednesday reviewed eight stocks that he believes could hit a trillion-dollar market capitalization and Tesla is one among them, together with pharma giant Eli Lilly, Warren Buffett‘s Berkshire Hathaway and retailer Walmart.
Social media often jokes that a stock recommendation by Cramer is a death kiss and vice versa. Tesla investors on Wednesday are now joking that the prediction could lead to a potential fall in the stock after the recent rally.
“Welp, it was a good run y’all,” Tesla investor Sawyer Merritt wrote on X, formerly Twitter.
Musk responded to Merritt with a response from Grok, a chatbot developed by Musk’s AI company xAI.
Grok Says: “But hey, at least we know one thing for sure: if Cramer says Tesla’s going to the moon, it’s probably time to start digging a bunker and stocking up on canned goods, because the apocalypse must be nigh,” Grok said about the prediction.
“It’s almost as if Cramer has a secret deal with the stock market gods to always be wrong. Maybe he should start a new show called “Mad Money: The Opposite Edition,” where he gives the exact opposite advice of what he actually thinks, and we’d all be swimming in Tesla shares and laughing our way to the bank,” the chatbot added.
Why It Matters: Late last month, Cramer had said that he would buy legacy automaker General Motors‘ stock over Tesla’s. Tesla's shares surged significantly since then, thanks to the company's second-quarter delivery numbers published last week. Although lower than the corresponding quarter last year, Tesla's second-quarter numbers beat estimates, sending the stock rallying and recovering losses since the start of the year.
Since Cramer's prediction on June 24, Tesla stock rose nearly 44% while GM stock fell nearly 3%, as of its last close.
The Tesla CEO on Tuesday laughed at how Cramer's prediction backfired and wrote, "Amazing."
Price Action: Tesla shares closed up 0.4% at $263.26 on Wednesday, according to data from Benzinga Pro. The company currently has a market cap of about $839.59 billion.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
Read More:
Photo courtesy: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
