Jim Cramer on Tesla (TSLA): “My Only Solution to It Is That SpaceX Has to Buy It”

On September 14, Jim Cramer, host of Mad Money, discussed Tesla's stock on air. The company's stock was trading at $358 per share, and Cramer expressed uncertainty about its short-term prospects. He suggested a potential solution—SpaceX should acquire Tesla. Tesla's second-quarter financials showed solid growth, with revenues increasing 26% year-over-year to $28.24 billion.

Automotive revenue reached $20.52 billion, while energy storage deployments surged 41% to 13.5 gigawatt-hours, generating $3.14 billion in revenue. Long-term growth prospects hinge on autonomous driving and robotics advancements. Cramer had previously shown confidence in Tesla's self-driving vehicles and robot development, and even mentioned a potential SpaceX acquisition.

However, Tesla faces intense international competition and increased operating expenses, which have impacted profitability. Despite strong revenue and deliveries, Tesla's operating margin fell to 1.4% during the second quarter. Hedge funds hold 116 positions in Tesla, with BAMCO Inc. being the largest shareholder at 12.5 million shares.

Short interest is relatively low at 2.10% of the float. Cramer's comment highlights Tesla's current position, balancing its potential long-term upside with current challenges. While Tesla remains an intriguing investment, Cramer believes other AI stocks may offer better short-term opportunities.