Investor Jim Cramer Says If You Think Telsa Is Just An Automaker, Then You Are Wrong

Tesla has an extremely high valuation. However, some investors who are not recognizing the company’s value are making one fatal mistake. Luckily, Jim Cramer is here to help, and he is advising investors to look at it as a technology firm, and not exclusively as an automaker.

“Only limited people really regard this $373 billion enterprise as a car company,” Cramer said. “It’s a tech company.”

Many investors, retail and professional alike, look at the Elon Musk-headed company as a car manufacturer. While that is true, Tesla’s mission goes far past, making sustainable, high-performance cars. The company has an entire energy division that creates clean energy alternatives. However, Tesla’s real meat lies within its technology developments that come from its battery tech and software.

Read Article

USNA1999 - 8/25/2020 11:02:06 AM

+1 Boost

Jim Cramer is a con artist and a clown but I think he is right on Tesla. This is the main reason for the high valuation as some investors see it as a tech company and not just an EV manufacturer.

SanJoseDriver - 8/25/2020 11:08:49 AM

+1 Boost

It's also technically becoming a decentralized electricity utility as well.

malba2367 - 8/25/2020 11:28:41 AM

+1 Boost

Who cares what Jim Cramer said...he doesn't outperform the S&P 500, so there is no reason to put any faith in his stock picks.

Tesla will not dominate the auto or energy industry the way Amazon, Apple and Microsoft have in either Autos or Batteries. Autos will always remain fragmented because of emotional purchases, brand loyalties, and protectionist policies. The big leap in batteries will be solid state batteries, and there are a lot of huge players dumping serious resources into this including Toyota, VW, Panasonic, Samsung, LG, Daimler, Total (also involved in Solar through their ownership of sunpower). Tesla may very well get to Solid State first but it is is priced is as if they are already there. Tesla energy will have a tough time being dominant for long, because others will catch up within a few years, and utilities don't care if the batteries say Tesla on them...they will shop for the cheapest option (China). I am not anti TSLA, They have created some amazing technologies and products, but there is nothing there to justify these share prices

skytop - 8/25/2020 11:54:04 PM

0 Boost

Cramer is nothing more than an NBC entertainer. Nothing more.

dumpsty - 8/26/2020 11:17:52 AM

+1 Boost

The large automakers are also developing compelling competing EV battery tech to reduce dependence on expensive or less available raw materials (metals) for batteries.

There's plenty of good concepts & plans for EV platforms, but the key is developing better motors & batteries to power the system for consumer-accepted ranges & performance.

Tesla has a more robust EV charging station network (in the US), but other companies like VW & GM can catch-up in a few years. Tesla wont become as (necessary) as Amazon or Microsoft...so the company has to keep innovating in a very aggressive manner for a long time.

SanJoseDriver - 8/28/2020 12:55:53 AM

+1 Boost

Tesla has a more robust EV charging network everywhere, not just the US. The competitors will never truly catch up on charging for one simple fact... Teslas can use all of the charging stations while no other car can use a Supercharger (yet).