TSLA Stock May See A Significant Upswing, Says Jim Cramer: 'Should Be Ready To Rally, Maybe Furiously'

Amid recent volatility, Tesla Inc. TSLA shares are showing signs of a potential rally, according to insights shared by Jim Cramer.

What Happened: Cramer, the host of CNBC's “Mad Money,” analysed Larry Williams‘ insights, which suggest that Tesla’s recent gains could be the start of a significant upward trend. Williams’ proprietary valuation model indicates that Tesla may be undervalued, a condition that historically attracts buyers and leads to stock rebounds.

Cramer noted that Tesla’s stock has been volatile since the election, initially surging due to Elon Musk’s proximity to President Donald Trump, but later declining amid Musk’s controversial role in the administration.

"Right now, it suggests that Tesla should be ready to rally, maybe furiously,” Cramer said.

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Despite recent challenges, Tesla shares began to recover on Tuesday, continuing their ascent on Wednesday with a 7.60% increase.

Cramer highlighted Williams’ charts, which point to a potential bottom for Tesla, suggesting the stock is ready for a rally.

The analysis also identifies seasonal patterns and cycles that historically result in Tesla rallying 80% of the time during this period.

Why It Matters: Tesla has been navigating a turbulent period, marked by a sharp decline in sales and stock value. Earlier this month, Tesla’s sales in Europe plummeted by 45%, contributing to a significant drop in Elon Musk’s net worth by $5.2 billion in a week.

This decline has pushed Tesla’s market capitalisation below the $1 trillion mark for the first time since November.

Moreover, JPMorgan analysts have predicted that Tesla will experience its weakest quarter for car deliveries since 2022, with a revised forecast of 355,000 deliveries, down from an earlier estimate of 444,000.

This figure is significantly below the consensus analyst projection of 430,000. Read more.

Despite these challenges, Elon Musk has announced plans to double Tesla’s vehicle production in the U.S. within two years. Musk announced this after Trump hosted an event for Tesla at the White House, followed by Trump's purchase of a Tesla Model S Plaid.

Tesla holds a momentum rating of 83.63% and a growth rating of 55.20%, according to Benzinga’s Proprietary Edge Rankings. The Benzinga Growth metric evaluates a stock's historical earnings and revenue expansion across multiple timeframes, prioritizing both long-term trends and recent performance. For an in-depth report on more stocks and insights into growth opportunities, sign up for Benzinga Edge.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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