Cramer's Tesla Turnaround: Why the Mad Money Host is Bullish Again

Jim Cramer, the often-oscillating host of CNBC's Mad Money, has once again shifted his stance on Tesla (NASDAQ: TSLA), returning to a bullish outlook. His renewed optimism is largely fueled by insights from NVIDIA CEO Jensen Huang and the ongoing rollout of Tesla's Robotaxi fleet, challenging conventional views on the company's valuation and operational focus.

Cramer's Shifting Sands: A Bullish Return for Tesla

Jim Cramer, known for his mercurial opinions on stocks, has swung back to a positive view on Tesla. This comes after periods of both strong bullishness, where he once called it a "sleeping giant," and bearish sentiment, where he found "nothing magnificent" about the company. His latest assessment suggests a deeper understanding of Tesla's evolving identity beyond just an automotive manufacturer.

Key Takeaways from Cramer's Analysis

• Beyond a Car Company: Cramer emphasizes that Tesla should not be solely viewed as a car company, a perspective he attributes to NVIDIA CEO Jensen Huang.

• Huang's Endorsement: He places significant weight on Jensen Huang's positive remarks about Tesla, suggesting that close collaboration between the two companies provides a unique and credible insight into Tesla's capabilities.

• Robotaxi Rollout: Cramer defends the early stages of Tesla's Robotaxi deployment, arguing that minor issues are being disproportionately magnified by media outlets.

Jensen Huang's Perspective: Tesla as More Than an Automaker

Cramer highlights Jensen Huang's narrative, which posits that focusing solely on Tesla's quarterly and annual delivery numbers is a misdirection. According to Cramer, Huang's close working relationship with Tesla leads him to believe that the company's true value lies beyond traditional automotive metrics. Cramer stated, "It’s not a car company," echoing Huang's sentiment and suggesting that those who remain fixated on delivery figures are missing the broader picture of Tesla's technological advancements and future potential.

Defending the Robotaxi Launch

The initial rollout of Tesla's Robotaxi platform in Austin, Texas, has faced considerable media scrutiny over minor glitches. Cramer, however, offers a more measured perspective, arguing that human drivers also make mistakes, yet these are not subjected to the same level of public magnification as Tesla's test phase. He questioned, "Why should we hold Tesla to a standard where there can be no mistakes?" He praised Tesla's cautious approach, noting the presence of safety monitors and limited operational areas, with CEO Elon Musk hinting at greater autonomy within a couple of months.