Jim Cramer said that electric vehicle (EV) maker Tesla (TSLA) is transitioning from being an automotive company to becoming a technology company. “Tesla is morphing right now,” he said on CNBC’s Mad Money. He believes that investors must “want to be there” because Tesla’s technology is worth much more than its car business. He also stated that it does not matter at what price you enter the stock, because the stock price is headed for significant upside.
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Cramer has not always been as optimistic about Tesla as he is now. He has had his share of bearish and bullish stances on the EV maker. CEO Elon Musk has been one of the primary reasons for investors’ divided stance on the stock. While some view Musk as Tesla’s most important asset, others view his frequent shenanigans and recent political controversies as bottlenecks for Tesla’s growth.
Tesla Is More Than a Car Company
Musk’s vision is to transform Tesla into a company focused on technology and artificial intelligence (AI). Tesla has recently entered the lucrative robotaxi market, while its vehicles also boast advanced full self-driving (FSD) technology. Its most ambitious Optimus robot venture is expected to go live soon. Meanwhile, its solar and energy storage business has remained a cash cow for the empire, with solid growth registered every quarter.
Tesla has been rapidly expanding its robotaxi business in Austin, Texas. The company is sending more “early access” invitations to a larger number of people, and the geofence area in Austin is also growing. The final goal is that eventually, the Robotaxi platform will not require an invite and will operate without geofences.
Moreover, Tesla launched its autonomous ride-hailing service in the Bay Area last month, with a safety driver on board. According to Musk, the company is looking to quickly expand to more than 100 robotaxis in the area to fulfill growing demand.
Unfortunately, Tesla is struggling to scale its Optimus robot production amid high costs and bottlenecks. Although Musk has made it clear that he sees humanoid robots as the future of Tesla, the company is far from meeting its ambitious production goals.
Is TSLA Stock a Buy, Hold, or Sell?
On TipRanks, TSLA stock has a Hold consensus rating based on 13 Buys, 15 Holds, and eight Sell ratings. The average Tesla price target of $305.37 implies 5.2% downside potential from current levels. Year-to-date, TSLA stock has lost 20.2%.
