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Jim Cramer has explained why he believes in the potential of Tesla (TSLA) stock even amid the coronavirus crisis.
Jim Cramer, the host of CNBC TV program Mad Money, has said he prefers Tesla, Inc (NASDAQ: TSLA) stock to Ford Motor Company (NYSE: F) stock. He said this while giving his answers to callers’ questions.
When a caller asked the host on-air about Ford Stock, Cramer said:
“No. The answer is no. It was a different Ford then … this Ford I just feel like I don’t know. I mean, it kind of just flatlines and I’m not in favor of the flatlining stocks. I like growth. I prefer Tesla.”
Cramer, with his choice of Tesla Stock over Ford, is a step in the right direction. Outside Elon Musk, Tesla CEO’s unpredictable actions like his recent tweet that lead to investors selling their shares, thereby plunging the value, Tesla (TSLA) stock remains promising.
Jim Cramer Believes in Tesla (TSLA) Stock Even amid Coronavirus
Tesla Stock, after plunging to around $400 in March owing to the coronavirus, days after, has surged to $800. The rebound occurred after the stock peaked at an incredible $944 a share just two months ago. As at press time, Tesla (TSLA) stock is trading at $818.69, which indicates a 1.08% drop.
Unlike Tesla, other automobile firms stock has not enjoyed much success as Tesla stock has. The electric car stock even remains promising as there are speculations that after the pandemic, car buyers are going to be more interested in buying electric cars.
Amidst Elon, coronavirus, and other setbacks the stock has faced, it has remained close to Toyota, the leading automobile stock. However, Toyota Stock also has experienced a sharp decrease in stock value during the pandemic.
The difference in the value of both stocks stands at $10B with Tesla valued at $150B and Toyota Motor Corporation (TYO: 7203) at $160B. Toyota had been over $225B in the months ahead of the Covid-19 outbreak.
Ford Stock vs Tesla Stock
Ford Stock, on the other hand, has not been all rosy in recent times. Ford stock value plunged by almost half from it’s all-time high in 2019 with a market cap of just $21 billion. As at the time of writing, Ford stock is trading at $5.57 with a 1.07% decline.
However, its stock is expected to go bullish again when its market continues to bounce back. The anticipation of businesses accelerating their re-opening and consumers buying big items like automobiles may also contribute to the stock growth. Ford has no control over macro risk but can do two things to help itself. It can create the perfect impression for its upcoming Bronco, and secondly, it’s set to launch the F-150 model must be high in quality and very reliable.
If Ford Bronco fans give the re-design a chance, then expect decent initial sales
Muhaimin is a journalist, a fintech and crypto enthusiast who is passionate about its development in Africa and across the globe. Muhaimin derives pleasure in reporting and analysing happenings in the crypto world and a believer in Blockchain technology.
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