Tesla, Inc. (NASDAQ:TSLA) is one of the stocks Jim Cramer discussed after the Fed rate cut. Cramer highlighted the company’s transition during the episode, as he said:
“Finally, Tesla’s transitioning from auto company to tech company, from a company that’s getting its head handed to it in sales to a company that’s a nascent leader in robots and self-driving cars and in energy storage. The auto business benefits from a rate cut, but Tesla no longer trades like an auto stock. Everything else is totally unrelated to the Fed. It doesn’t work. No wind at the back of any of these.”
Photo by Tesla Fans Schweiz on Unsplash
Tesla, Inc. (NASDAQ:TSLA) designs and sells electric vehicles and also develops and installs solar energy and storage systems for residential, commercial, and industrial customers. In addition, the company is working on autonomous vehicles and robots. Cramer discussed the company during the November 25 episode and commented:
“Tesla was a car company, and its stock rallied as a car company, and then when things got very competitive in electric vehicles, the stock got hammered and hammered and hammered again. But when Tesla fell from the $400s to the $200s at the beginning of this year, an amazing thing happened. The stock, not the company, the stock, was always the same company, morphed into a chit in the great game of self-driving and robots. CEO Elon Musk simply changed the narrative, and the Street bought it. That perception has allowed the stock to regain almost all those lost points, even though it’s pretty much the same company it was before the decline in electric vehicle profits. And that’s what the Magnificent 7 do.”
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Disclosure: None. This article is originally published at Insider Monkey.
