Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Tesla Motors Inc (TSLA)’s Awarding of Gigafactory to Nevada Surprises Cramer

Tesla Motors Inc (NASDAQ:TSLA) announced yesterday that their $5 billion Gigafactory would be awarded to a site outside Reno, Nevada, ending months of speculation as to which state would win the rights to host the battery factory. On CNBC this morning, outspoken analyst Jim Cramer expressed some surprise over the decision, and at some of Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk’s moves in general.

Tesla Earnings Call Transcript 2014 Q1

“Yeah, I was surprised. I mean Texas is; I actually thought this one was going to Texas because that state has really positioned itself in a remarkable way, but…I disagree with Musk; I know we’re going to talk about that he said the stock may be too high, he said that multiple times. Musk has defied a lot of traditions and a lot of knowledge,” Cramer said.

While Texas was reportedly offering the greatest package of incentives to try and lure Tesla Motors Inc (NASDAQ:TSLA) to building their Gigafactory in the Lone Star State, Musk revealed last night in an interview with CNBC that the biggest factor in the decision was not the incentives package, but rather the surety of when the factory would be operational and churning out electric batteries. On that front, Nevada was the leader, which dictated their victory.

Speaking about Musk’s comments that Tesla Motors Inc (NASDAQ:TSLA)’s stock may be a little too high, and that investors and analysts can sometimes get carried away, Cramer said there would likely be some that try to short the stock because of Musk’s comments but that they would eventually get run over again by the stock’s boundless momentum.

Tesla Motors Inc (NASDAQ:TSLA)’s stock is sharply lower today in morning trading, down over 3%, with the possibility that short sellers are indeed out in force and taking advantage of Musk’s comments. Cramer added that he puts more faith in Musk’s comments on his cars than he does his comments on his stock.

Disclosure: none

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.