Jim Cramer Says Tesla Stock Could Climb To $175 Today On Back Of Elon Musk Comments: 'Everything That Was Bad Is Now Good'

Despite missing analyst estimates for the first quarter, Tesla Inc TSLA shares are surging Wednesday on the heels of the company’s quarterly report. Jim Cramer is surprised the stock isn’t moving even higher.

What To Know: Tesla’s first-quarter revenue of $21.301 billion came in below the consensus estimate of $22.151 billion. The EV maker also reported adjusted earnings of 45 cents per share, which missed estimates of 51 cents per share, per Benzinga Pro estimates.

Although Tesla came up short of estimates on the top and bottom lines, the stock is taking off on Wednesday.

Many analysts are attributing the upward momentum to the company's accelerated timeline for the launch of an affordable new vehicle model. However, Cramer believes the move in Tesla shares is simply about sentiment.

“This is now trading on sentiment. The sentiment was so low,” Cramer said Wednesday on CNBC’s “Squawk On The Street.”

“You think this is only going to be up $15? I mean I think this thing has the possibility of being up $30 because the sentiment changed.”

Check This Out: Musk Lifts Sentiment In Entire Stock Market By Saying A Regular Car Is Like “Riding A Horse”

At the time of writing, Tesla shares were up approximately $15 for the day, hovering around $160 per share following a 10% move to the upside. Cramer suggested that the sentiment change in Tesla could take the stock to $175 as soon as today.

He attributed much of the shift in sentiment to the commentary from CEO Elon Musk on the conference call, in which he laid out his vision for the future of Tesla involving AI and robotaxis. Cramer also highlighted several analyst reactions pointing to the accelerated launch of a next-gen vehicle, a push for lower costs and the introduction of a ride-sharing app.

“He just comes up with a compelling reason why you should buy the stock,” Cramer said, referencing Musk’s comments on the call.

“Everything that was bad is now good. It’s front seat, back seat.”

TSLA Price Action: Despite Wednesday’s gains, Tesla shares are still down approximately 36% year-to-date as investors continue to grapple with slowing EV demand trends. 

Tesla stock was up 11.41% at $161.19 at the time of publication, according to Benzinga Pro.

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