Jim Cramer Couldn’t Blame Anyone Who Held These Two Elon Musk Stocks

Jim Cramer, the CNBC TV host, defended those who held stocks in Tesla Inc. (NASDAQ:TSLA) and SpaceX (NASDAQ:SPAC) when discussing Elon Musk's companies. Cramer praised Musk for his forward-thinking and compared him to the greatest businessman of the time. He noted that his own business acquaintance had differing opinions about Musk, expressing admiration for his business acumen.

Cramer stated, "I don't blame or criticize anyone who's in these stocks. Because this man is well ahead of everybody else in the way he thinks." Regarding Tesla, Cramer acknowledged the lack of profitability and questioned whether growth justified the current valuation. He highlighted that despite a decline in profit margins and negative free cash flow, Tesla's revenue from its AI, robotics, and ridesharing platforms had increased.

Meanwhile, SpaceX's growth was substantially higher, with a 92% annual growth in revenue, a $47.5 billion backlog, and a 66% annual growth in its Starlink business, which accounted for 55% of the firm's revenue. Cramer concluded that both companies' capital expenditures were heavily invested in AI, leaving investors to question if the spending would lead to market share capture and profitability.