Jim Cramer assesses Tesla’s potential

Jim Cramer assesses Tesla’s potential

Jim Cramer’s Tesla Elon Musk

CNBC’s “Mad Money” host Jim Cramer gave his insights on Tesla Inc.  as the stock observed an over 6% jump following the announcement of increasing the price of Model Y.

What Happened: Tesla’s stock rose following the announcement of a price hike for its Model Y cars, The price increase is expected to come into effect in April.

Cramer commented on the stock’s performance, stating “The stock is reacting positively. … It’s just been the worst stock in the [S&P 500]. Totally understand. Not a fan of it, but not against it,” reported CNBC on Tuesday.

Why It Matters: Tesla, once a high flyer, has seen its stock performance dwindle in 2024. The company, which was among the top EV producers, has experienced a sharp decline in its stock value over the last three months. This decline has occurred despite the S&P 500 Index reaching new all-time highs in 2024, surpassing the 5,000 level.

Goldman Sachs recently revised its price projections for Tesla due to production and sales challenges. The firm cited a combination of production difficulties and weakening market demand for electric vehicles as the reasons behind the revised expectations.

The stock surge follows a series of price increases for the Model Y. Tesla announced a $1,000 price hike for all Model Y vehicles in the U.S. starting Apr. 1, following a similar increase for the Model Y rear-wheel drive and long-range models on Mar. 1. The company also raised prices for its Model Y vehicles by about 2,000 euros ($2,177) in several European countries, with the changes set to take effect on Mar. 22.

Future Fund’s Managing Partner, Gary Black, recently suggested that Tesla should consider adding a fourth segment focused on its Artificial Intelligence endeavors to its earnings reports. Black believes that this move could attract greater investor attention to Tesla’s AI projects, potentially enhancing the company’s valuation.

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