Renowned CNBC financial analyst, Jim Cramerexpressed Wall Street’s confidence Elon Muskthe CEO of Tesla Inc TSLAis decreasing due to the decline in the company’s stock price.
What happened: Cramer on Wednesday drew a comparison between investor sentiment toward Musk and the industry giant Warren Buffett, as reported by CNBC. He pointed out that while Buffett continues to be admired by investors, Musk is facing a backlash due to the collapse in Tesla’s stock value.
According to Cramer, investors hailed Musk as a “genius” and praised Tesla’s electric vehicles as long as the company’s stock thrived. However, investor sentiment has changed, with Tesla shares down more than 30% year to date.
Concerns have been raised about the falling prices of Musk’s electric vehicles and growing competition from Chinese automakers. There are also concerns that Musk may be concerned about other ventures, such as the acquisition of X, formerly known as Twitter.
“Look, even when Tesla’s business falters and the stock drops, I always warn you by reminding you that Elon Musk is brilliant,” he said. “But now there are undertones that he’s lost his touch or maybe he’s become more of an evil genius – which I think, by the way, is unfair, but life is unfair.”
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“With the downgrades and price target cuts, Musk really has his hands full,” Cramer noted. Despite this, she remains optimistic about Musk’s potential, saying he is still a brilliant mind.
In contrast, Cramer praised Buffett’s investment firm, Berkshire Hathaway BRKfor its robust portfolio and core insurance business, describing it as “truly magnificent”.
Price action: At the time of writing, Tesla shares are priced at $171.76, reflecting a decline of 2.89% over the past 24 hours. The stock has seen a year-to-date decline of 30.86%. However, according to data from Benzinga Pro, it has seen a remarkable increase of 862.24% over the past 5 years.
Because matter: This development follows a series of events that shaped the relationship between Musk and Cramer. In December, Musk criticized Cramer’s dismissal of recession fears, calling his prediction “alarming.”
However, in January, Cramer praised Musk’s company Neuralink for its breakthrough achievements in human brain implant technology, which surprised Musk.
Cramer even suggested that Musk has the ability to make the impossible possible. In March, Cramer defended Musk’s use of ketamine, saying many people wouldn’t be brave enough to admit to its use.
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Image of Elon Musk generated via Midjourney
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Kaustubh Bagalkote
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