Jim Cramer: Elon Musk Is a Genius, But He's Not a Stock

Credit: The Street
Published on May 20, 2019 - Duration: 01:15s

Jim Cramer: Elon Musk Is a Genius, But He's Not a Stock

Wedbush released a note on Tesla , where they cut the company's price target to $230 from $275.

Analysts dug into the company's path to profitability, the company's new CFO and the many projects that Tesla has undertaken.

"We continue to have major concerns around the trajectory of Tesla's growth prospects and underlying demand on Model 3 in the U.S. over the coming quarters which is putting more heat in the kitchen on Musk & Tesla to reign in expenses at an accelerated rate with profitability targets in [the second half of 2019], a Kilimanjaro-like uphill climb, in our opinion," wrote Wedbush.

The note also called out Tesla's new CFO Zachary Kirkhorn.

"With an inexperienced CFO at the helm, micromanagement of expenses now a focus (e.g., Musk employee email/memo from last week per media reports), and demand issues a dark butt over Fremont, we have continued concerns around Tesla's ability to balance this "perfect storm" of softer demand and profitability concerns which will weigh on shares until Musk & Co.

Prove otherwise in terms of delivering solid results over the coming quarters," wrote Wedbush analysts.

Jim Cramer says that investors to remember that Elon Musk is not the stock, so don't invest simply for the CEO.

"[Tesla investors] are not looking at the fundamentals, the fundamentals mean nothing to them.

Now what they care about is Elon Musk is a genius.

Elon Musk is a genius, but he's not a stock.

If he were a stock, you'd be a buyer, but he's not.

A person is not a stock and people have to recognize you're buying a person, but a person doesn't have an earnings per share.

A person doesn't have a balance sheet.

It's just a person.

This is a company that they should be thinking about, but they're not going to," said Cramer.


What's Next for Tesla as Major Investors Dump Shares?

Watch Jim Cramer's Daily NYSE Show and Replays Below


You are here

Recent related videos from verified sources

Elon Musk And His Twitter Account 00:33
Credit: Wochit Business - Published 9 hours ago 

Jim Cramer on Why Broadcom is Broadly Disappointing 01:16
Credit: The Street - Published 3 days ago 

Will Chewy Be the Top Dog in 2019's IPO Race? 02:20
Credit: The Street - Published 3 days ago 

Jim Cramer Breaks Down The Chewy IPO, Broadcom Earnings, and The Fed 09:37
Credit: The Street - Published 3 days ago 

Musk talks in-Tesla gaming, startup struggles 02:06
Credit: Reuters Studio - Published 4 days ago 

Elon Musk Bringing More Games To Tesla Cars 00:33
Credit: Wochit Business - Published 4 days ago 

Jim Cramer Explains How to Do Your Investing Homework 01:30
Credit: The Street - Published 4 days ago 

Jim Cramer: How Investors are Rebelling With Beyond Meat, not Tyson 01:40
Credit: The Street - Published 4 days ago 

You might like