Coinspeaker
Tesla Stock Will Sell Off Hard If Earnings Report Disappoints, Says CNBC’s Jim Cramer

Tesla has had a great year already and most forecasts on the electric vehicle company’s stock are bullish. Tesla will publish its quarterly earnings report later today and the anticipation is already high. As the market waits, CNBC’s Jim Cramer has said that Tesla has no choice but to impress the market with its report or its value will tumble.

According to Cramer who hosts CNBC’s Mad Money, Tesla’s current fortunes could very quickly change for the worse if it doesn’t meet expectations. However, Cramer is very optimistic. He said:

“If Tesla stumbles, the stock will sell off hard, but I believe my buddy-pal-friend Elon Musk will deliver.”

Market analysts have already put Tesla’s earnings at $0.57 per share for the past quarter. This is informed by the company’s map of improved profits over the last few months.

For many years, the company was written off by the general market and investors because of its piling debts. In February, Tesla was suffering under debts larger than $900 million. Shortly after the situation came to the fore, TSLA shed more than 12% of its weight.

By the third quarter of 2019, its fortunes changed. The company reported an impressive $143 million net income and its chances of growth began to improve considerably. This, and many more, helped Tesla change its general outlook, relaxed its investors a bit, and even pulled more in. At this point, analysts and even Tesla skeptics became bullish about TSLA.

TSLA is currently trading at $573.80 after gaining 1.22% on the day. It has recently crossed the $100 billion mark, making the company the second most valuable auto company in the world, just after Toyota. It displaced Volkswagen (VW), which used to be in the second position.

TSLA has climbed more than 35% in the last month and boasts of almost 80% gains in the last three months. With a market cap of $102.18 billion, it also hit its current $594.50 all-time high on Wednesday, Jan 22.

Its manufacturing plant in China is also another big plus for the company. Tesla began and concluded construction in Shanghai in just about 10 months. The company has already started delivering made-in-China Model 3 vehicles all within a year. According to Cramer:

“Tesla’s spectacular performance has silenced its critics, and the results have been fabulous for the shareholders.”

While a large percentage of the market has expressed their approval of Tesla, not everyone is as bullish. Former presidential candidate and consumer advocate Ralph Nader has expressed worry over Tesla’s sharp growth trajectory.

According to Nader, the current Tesla surge will cause an implosion in the stock market bubble. Nader believes that Tesla’s valuation rising above VW’s is worrisome because the latter sold more than 10 million vehicles in 2019 while Tesla sold less than 400,000.

Tesla Stock Will Sell Off Hard If Earnings Report Disappoints, Says CNBC’s Jim Cramer

Similar to Notcoin - Blum - Airdrops In 2024

origin »

192 +