Jim Cramer feels Wall Street is losing confidence in Elon Musk

Jim Cramer feels Wall Street is losing confidence in Elon Musk

Renowned financial analyst from CNBC, Jim Cramer, has voiced that Wall Street’s trust in Elon Musk, the CEO of Tesla Inc , is dwindling due to the company’s falling stock price.

What Happened: Cramer, on Wednesday, drew a comparison between investor sentiment towards Musk and industry titan Warren Buffett, as reported by CNBC. He pointed out that while Buffett continues to be admired by investors, Musk is facing a backlash due to Tesla’s sinking stock value.

According to Cramer, investors hailed Musk as a “genius” and lauded Tesla’s electric vehicles as long as the company’s stock thrived. However, investor sentiment has shifted, with Tesla’s shares experiencing a more than 30% drop year to date.

Concerns have been raised over the declining prices of Musk’s electric vehicles and increasing competition from Chinese automakers. There are also fears that Musk may be preoccupied with other ventures, such as his acquisition of X, previously known as Twitter.

“Look, even when Tesla’s business is faltering and the stock is going down, I always caveat that by reminding you that Elon Musk is brilliant,” he said. “But now there are overtones that he’s lost his touch or maybe become more of an evil genius — which I think, by the way, is unfair, but life’s unfair.”

“With the downgrades and price target cuts, the long knives are really out for Musk,” Cramer observed. Despite this, he maintains his optimism about Musk’s potential, stating that he is still a brilliant mind.

Conversely, Cramer lauded Buffett’s investment firm, Berkshire Hathaway , for its robust portfolio and crucial insurance business, describing it as “truly magnificent.”

Why It Matters: This development follows a series of events that have shaped Musk and Cramer’s relationship. In December, Musk criticized Cramer’s dismissal of recession fears, calling his prediction “alarming.”

However, in January, Cramer praised Musk’s company Neuralink for its groundbreaking achievement in human brain implant technology, which surprised Musk.

Cramer even suggested that Musk has the ability to make the impossible possible. In March, Cramer defended Musk’s use of prescription ketamine, stating that many people wouldn’t be brave enough to admit its use.

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