Elon Musk laughs at Jim Cramer

Elon Musk laughs at Jim Cramer

Elon Musk on Tuesday laughed at how Tesla Inc.’s  stock rallied after Jim Cramer said in June that he would buy legacy automaker General Motors‘ stock over the EV giant’s.

What Happened: CNBC “Mad Money” host and former hedge fund manager Jim Cramer said in late June that he would rather buy General Motors shares than Tesla’s. GM CEO Mary Barra is “crushing it,” Cramer then said.

However, Tesla’s shares have 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.

Social media often jokes that a stock recommendation by Cramer is a death kiss and vice versa. Since Cramer’s prediction on June 24, Tesla stock has risen nearly 44% while GM stock fell nearly 4%.

The Tesla CEO too joined the community on Tuesday to laugh at how Cramer’s prediction backfired and wrote, “Amazing.”

Why It Matters: For the second quarter, GM sold 696,086 vehicles in the U.S., marking a jump of 0.6% from last year. EV sales too rose over 40% from the corresponding quarter of last year to 21,930 units.

Despite the rise in sales, electric vehicles still contribute to merely 3.15% of the company’s total vehicle sales in the country.

Tesla, meanwhile, delivered 443,956 vehicles in the second quarter globally, marking a 4.8% drop from last year but still beating the consensus estimate. Tesla does not segment its vehicle deliveries by geography.

Price Action: Tesla shares closed 3.7% up at $262.33 on Tuesday. The stock is up 5.6% year-to-date, according to data from Benzinga Pro. GM shares, meanwhile, closed down 0.6% at $46.26 on Tuesday. However, the stock is up 28.3% year-to-date.

Leave a Reply

Your email address will not be published. Required fields are marked *

Pin It on Pinterest