Jim Cramer says Tesla Inc (NASDAQ: TSLA) is back after the stock fell about 16% over the last month. The “Squawk On The Street” host expects the share price to reach $300.
“Tesla is back … I think that stock goes to $300,” Cramer said Monday morning on CNBC.
Austin, Texas-based Tesla is currently trading at $215.90 per share on last check Monday, down 1.84%. Tesla shares have faced heavy selling pressure in recent weeks since the EV maker reported disappointing financial results in mid-October.
Tesla missed analyst estimates on both the top and bottom line and turned in production numbers that were down sequentially.
Multiple analysts noted that they were discouraged by CEO Elon Musk’s attitude on a recent conference call as he seemed to complain too much about macro factors instead of offering solutions to the problems.
Tesla shares jumped in premarket trading Monday following reports that the company plans to build a vehicle at its German factory that will sell for 25,000 euros ($26,838).
Separate reports also indicated that Tesla is increasing wages at Gigafactory Berlin in response to ongoing unionization efforts, but Tesla Germany reportedly denied any connection between Tesla’s salary adjustments and the union activity.
Strikes: Cramer also noted that he isn’t worried about potential strikes at Tesla following the recent United Auto Workers strikes at Ford, GM and Stellantis factories.
UAW president Shawn Fain got the best of Detroit’s big three automakers, but he isn’t smart enough to go toe to toe with Musk, Cramer said.
“Musk-Fain would be a lot of fun … but Musk plays three-dimensional chess,” he said.
Ford, GM and Stellantis were “outgamed at every turn,” Cramer said: “It was almost like Fain was a great NFL coach who really figured out all the weaknesses of the other team and just came in and blew them away.”
Despite recent weakness in Tesla shares, the stock is still up approximately 76% year-to-date. A rally to $300 per share would represent a 39% increase from current levels.
Tesla shares were down 1.67% at $216.27 at the time of publication, according to Zenger News Pro.
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