Summary
- Jim Cramer believes Tesla stock rally will be resilient after Trump’s election
- Elon Musk’s contributions to Trump campaign may lead to reward for Tesla
- Cramer surprised Tesla stock did not rise more after election
- Rise in Tesla stock pushed the company past $1 trillion market cap
- Market positively responds to election of Donald Trump according to Cramer
Article
Jim Cramer, host of Mad Money, shared his thoughts on Tesla stock following the election of Donald Trump as president, stating that the rally in Tesla could be resilient. Cramer mentioned that Trump sees politics as personal and may reward Elon Musk, the CEO of Tesla, for his contributions to his campaign. This could lead to approvals for Tesla’s Full Self-Driving features and other benefits for the company. Despite a notable rise in TSLA stock after the election, Cramer expressed surprise that it was not higher.
The recent surge in Tesla stock has pushed the electric vehicle maker’s market cap above $1 trillion, a milestone celebrated by Tesla bulls who have held onto the stock for some time. However, Tesla bears have suffered losses due to the rise in TSLA stock, with shorts losing $5.2 billion between the U.S. presidential elections and the end of the previous week. Overall, Cramer noted that the market has responded positively to Trump’s election, with a peaceful transition to the next president leading to a significant buying celebration and a bullish trend in the market.
Cramer emphasized that Trump’s personal approach to politics could benefit companies like Tesla, as Trump may reward Musk for his support during the campaign. Musk’s desires for nationwide approval of Full Self-Driving and other advantages for Tesla could potentially be supported by the new administration. Despite already seeing significant growth, Cramer predicted that Tesla stock has the potential to rise further as a result of Trump’s presidency and his personal connection with Musk.
The positive outlook for Tesla stock was highlighted by Cramer, who expressed confidence in the company’s potential for continued growth under Trump’s administration. The positive market response to the election was attributed to the market’s favoring of Trump and his peaceful transition to the next president. Cramer described the post-election period as a “bull jailbreak” where the market saw a surge in buying activity and a positive sentiment among investors.
As the market continues to react to the election results, Tesla stock remains a topic of interest for investors and analysts like Cramer. The optimism surrounding Tesla’s future prospects under Trump’s presidency is reflected in the positive forecast provided by Cramer, who sees potential for further growth and rewards for companies like Tesla due to Trump’s personal connections and political approach.Despite the recent rally in Tesla stock, Cramer believes that the uptrend has strong potential to continue and reach even higher levels, making Tesla a stock to watch in the coming months.
Read the full article here
