Jim Cramer has called the bottom in Tesla Inc TSLA stock with shares down more than 30% for the year.
Turning The Corner: Tuesday on CNBC’s “Squawk On The Street,” Cramer told viewers he believes Tesla shares have fallen too far.
“The writing off of the EVs is a little premature,” Cramer said. “We’re all going to be driving EVs by 2030.”
Tesla shares have been under pressure in recent months as the broader EV industry wrestles with weak demand trends. The Austin, Texas-based carmaker has engaged in a pricing war with competitors in an attempt to mitigate the effects of slowing demand.
Price cuts, however, have negatively impacted margins.
Tesla recently announced that it would increase prices for all Model Y vehicles in the U.S. by $1,000, beginning April 1. The EV maker also said it would increase prices by more than $2,000 in multiple European countries.
Cramer explained that as used car prices continue to bounce back, Tesla gains more leverage on pricing, which could help push shares higher from current levels. Used car values of Teslas in particular have gone up in the last month, he added.
“I think that this is the bottom in the stock. I said that last night on ‘Mad Money’ because I have been waiting on the prices of the used cars to bottom and they are,” Cramer said.
Indeed, on the Monday night episode of “Mad Money,” a caller asked Cramer for his thoughts on Tesla.
“I think Tesla has come down too far,” Cramer responded. “Now it’s $500 billion, so it ain’t cheap, but the stock is down 30% for the year… When are you going to start a position in Tesla other than right now?”
Check This Out: Tesla CEO Elon Musk Says Upcoming Roadster ‘Not Even Really A Car’ And Would Be ‘Cooler Than The Cybertruck’
TSLA Price Action: Tesla shares were down 1.39% at $171.40 at the time of writing Tuesday afternoon, according to Benzinga Pro.
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