Jim Cramer Drops Bold Call On Tesla Stock

Tesla (NASDAQ:TSLA) stock got a big nod of approval from Jim Cramer saying the company is morphing from an automaker into a technology play and argued the upside is big no matter the entry price.

On CNBC’s Mad Money, Cramer said Tesla’s technology is worth more than its car business and urged investors to want to be there. Sentiment around Elon Musk still splits the room, with bulls calling him Tesla’s key asset and critics pointing to distractions and recent controversies as growth hurdles.

The tech push is front and center. Tesla launched an autonomous ride hailing service in the Bay Area last month with a safety driver and wants to scale to more than 100 robotaxis. In Austin, early access invites are widening and the geofence keeps expanding, with a goal of running without invites or geofences.

Full self driving remains the showcase. Optimus could go live soon, though costs and production bottlenecks are slowing scale. Energy storage and solar keep posting steady growth.

if software and services take the wheel, valuation could lean more on tech multiples than auto margins.Bottom line: watch how quickly robotaxi fleets grow and when Optimus hits milestones.

This article first appeared on GuruFocus.