Don’t Buy – Or Short – Tesla Motors Inc (TSLA), Says Jim Cramer

Is Tesla Motors Inc (NASDAQ:TSLA) a good stock to buy? If you ask Jim Cramer, he’d suggest that maybe the best strategy to employ when it comes to the stock of the electric car maker is to avoid it.

In a Mad Money segment where the CNBC host was discussing Tesla Motors Inc (NASDAQ:TSLA),, Inc. (NASDAQ:AMZN) and Netflix, Inc. (NASDAQ:NFLX), Cramer explains that there are tenacious parties at both ends of the argument regarding billionaire Elon Musk’s company.

“How about Tesla? That’s tomorrow’s business. We have a new Buy rating and a reiteration of a Buy this morning in anticipation of the company’s earnings. Both analysts after I read through reports seem to indicate that they have the inside track that the quarter would be great. I remain fascinated by this company and its CEO Elon Musk because you have some very keen minds on both sides of the trade, although the short sellers have been much more strident than the longs, so to speak, who simply believe that the best car should win no matter what,” Cramer says.

Tesla Motors Inc (NASDAQ:TSLA) is set to report its latest quarterly performance by markets close today.

“Here’s the bottom line. There are three stocks that seem to know no bounds in a market that gets bound and hogtied anytime it tries to go anywhere. They define the current zeitgeist and I understand the bull case in all three even as I think they are total cult stocks. Still I say Netflix reflects real value. Amazon could if it wanted to. As for Tesla, drive the car but don’t own or short the stock,” Cramer says.

In another discussion on CNBC, reporter Phil LeBeau discussed why Jefferies has initiated coverage on Tesla Motors Inc (NASDAQ:TSLA) painting a very bright future for the company, a stark contrast to what Cramer may be suggesting.

In essence, Jefferies analyst Dan Dolev says that the company will hit 500,000 units in 2020, that China worries are overblown, and margins for the Model S and the upcoming Model X are set to expand.

Tesla, is TSLA a good stock to buy, NASDAQ:TSLA, Jim Cramer, NASDAQ:AMZN, NASDAQ:NFLX,

Blue Mountain Capital, managed by Andrew Feldstein and Stephen Siderow, owned 15 million shares in Tesla Motors Inc (NASDAQ:TSLA) by the end of 2014.

I just made 84% in 4 daysI Just Made 84% in 4 Days By Blindly Following This Hedge Fund

I just made 84% in 4 days by blindly imitating a hedge fund’s stock pick. I will tell you how I pulled such a huge return in such a short time but let me first explain in this FREE REPORT why following hedge funds’ stock picks is one of the smartest things you can do as an investor. We launched our quarterly newsletter 2.5 years ago and not one subscriber has, since, said ‘I lost money by EXACTLY following your stock picks’. The reason is simple. You can beat index funds by creating a DREAM TEAM of hedge fund managers and investing in only their best ideas. I just made 84% in 4 days by blindly imitating one of these best ideas. CLICK HERE NOW for all the details.

Suggested Articles:

Most Expensive Mobile Phones In the Market

Most Popular Songs of All Time