Jim Cramer: Tesla CEO Elon Musk is a 'big thinker'

CNBC’s Jim Cramer praised Tesla CEO Elon Musk on Thursday for building a company that promises to be much more than just electric vehicles.

“This man is selling technology, and he’s talking about fully assisted and then he’s talking about driverless. He’s thinking so much bigger,” Cramer said on “Squawk on the Street.” “He’s a big thinker. He makes us look like Lilliputians.”

The “Mad Money” host’s comments came one day after Tesla reported its fourth consecutive quarter of profitability, clearing the way to be considered for inclusion in the S&P 500 index.

Shares of Tesla, which have soared over 280% this year alone, were up and down Thursday, trading around $1,620 each. The stock hit an all-time of $1,794.99 last week.

While emphasizing that Tesla’s future is about more than just the cars it builds, Cramer said the company stands out because it’s delivering what its legacy automaker rivals can’t.

“When you have demand when the other guys are closing plants because they don’t have demand, what it says is you’re not selling what they’re selling,” said Cramer, who had been a skeptic of Musk and Tesla. “You’re making something entirely different from what they’re making.”

Tesla’s renewable energy business also distinguishes it, Cramer said. Its energy storage business Megapack just turned in its first quarterly profit. Tesla also reported that solar roof installations tripled in the second quarter from the first quarter.

“He’s got this whole thing going on with solar and with energy that we don’t talk about enough,” Cramer said, dismissing criticism that Tesla’s revenue relies too much on the sale of regulatory carbon-emissions credits to other automakers.

Chamath Palihapitiya, the venture capitalist and former Facebook executive, told CNBC earlier Thursday that Tesla’s renewable energy component could make it worth trillions. As of Thursday, Tesla’s stock market value was nearly $300 billion.

“It is the leading hedge when it comes to electrification and decarbonization. This is no longer about cars, that’s the first wave of growth,” Palihapitiya said on “Squawk Box.”

However, not everyone is on the Tesla bandwagon.

Mike Jackson, CEO of car dealer giant AutoNation, said in a separate “Squawk Box” interview, “The stock price is insane. The valuation is insane.”


Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

Connect with CNBC News Online

For info on the best credit cards go to CNBC Select:

#CNBC
#CNBCTV

[yggdrasil]

Demand on zero advertising. Go figure, Elon has rewritten the rules.

[michaelcarroll]

Elon Musk is our once in a generation talent. Much like the individual he named his auto manufacturer after was for his generation. Kudos to the US for attracting him to build his business enterprises in the country.

[wellknowndrilla]

Tesla will be a trillion dollar market cap company

[k.t.]

how many YEARS was this guy betting AGAINST Tesla? Pffff....

[rickkay]

Cramer is 10000% correct! Tesla is lightyears ahead in their product offerings and is executing very well given the current situation

[nenaradicevic]

Elon Mask is a genius, visionary leader Can't wait to see more from Tesla and his space technology

[consumer]

Have BOB LUTZ back on the show. And apologize for being so WRONG about Tesla.

[JohnnyThundr]

50, 000 Starships flying by 2050, mark my words.

[jogrady]

This is just the tip of the ice ...remember a computer on wheels named “Kit” show

[zdavidzz]

The fact that bob lutz doesn't have a twitter SUMS IT UIP

[dwr]

Jim has been one of the few CNBC types that realized sometime late last year that Tesla is a tech company (not a car or EV only company)...ppl love it for it's tech for its over the air updates for their apple like design sensibility

[Minte]

Cramer is the most entertaining person on television 📺

[pythonuploads]

People who criticize Jim don't understand how the world works. Jim is flexible. This is a volatile world.

[mdo]

They should do a secondary in order to help their cause.

[bobholland]

He is a genius. he looked for somebody to design him a rocket to get land vertically everybody told him it couldn't be done so he designed it himself and did it on the third shot that's genius hold my beer.

[venkatpartha]

He's a great doer, an achiever...a winner!!!

[herakets]

Sounded like the media just took out this one soundbite about being just "slightly" profitable but they missed his whole point about growth and scaling. Disruptor, disruptor, disruptor.

[rababrayan]

I laughed at the title. Wasn't Cramer against Tesla just a few years ago?

[ricrdo_o]

I hope that humanity does not spread throughout the universe before it evolves.

[waterdog]

WoW Jim that’s Earth Shattering Information!