Jim Cramer’s 9 Failed Predictions From 12 Months Ago

2. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 126

A viewer from New York asked about Tesla, Inc. (NASDAQ:TSLA), its current valuation and prospects. Cramer admitted to having mixed feelings.

“You know, I’m struggling with Tesla. I’m struggling with Tesla because even after this decline, it’s still a $567 billion company. And I happen to think that there are problems in China, problems in Germany, problems in the United States, problems in the National Highway Traffic Safety Administration, and problems with the robot. Otherwise? That is still might. […]

I’m tired of hearing about Elon Musk’s Robo taxi. Maybe one day there’ll be a savior but America isn’t set up for him and China wants to do it. They’re going to do it cheaper and homegrown.

Cramer got this one wrong as Tesla surged 55.35% despite the issues he highlighted.

However, Cramer provided a mix of opinions on Tesla, Inc. (NASDAQ:TSLA) since then. Here’s what he said in April following the EV maker’s earnings:

“It was a changeover quarter.”

“They’re talking about having a million robots. They’re talking about having much better than Waymo in Austin.”

“What I took away from this is that the reason why you had that really bad quarter if you wanna be simplistic about it, is he’s not been focused and they had this changeover and now he’s back. And the magic is back. So, you can have all these hedge fund managers, all the mutual fund managers who love him, they’ll just sit there and take the stock which is up 17 right now, they’ll take it up to 275 over the next couple of days. Because they love him so much. And he is, he’s not a pied piper, he’s a serious guy.”

“Yes he has. . .I think memories are short. I think they’ll have new models. I think he talked very positively about China. He does have a tariff problem.”

“[On rare earth metal constraints due to Chinese ban] They need a break there. They need some sort of deal. Maybe that’s something that would come up. David, I want to go back to this Waymo issue versus . . I mean he just says, look, Waymo is very expensive. It’s not really their own car. Uh, you’re going to see, in Austin, you’re going to see an explosion of Teslas. I think that’s the next big thing that gets to these managers all juiced and says I gotta buy this thing.”