CNBC’s Jim Cramer makes the case for ownership Tesla The stock says it’s worth noting because President-elect Donald Trump reportedly wants to loosen U.S. self-driving laws, but also because of CEO Elon Musk himself.
“While I don’t buy a national self-driving mandate, I think nothing is really slow about owning a Tesla,” he said. “The Musk premium will work its magic in other ways, perhaps with favorable municipalities along federal highways and Tesla rentals.”
Electric vehicle stocks rose 5.62% on Monday Close up, followed by a Bloomberg Report That the Trump transition team wants to create a federal framework for self-driving cars. Such a framework could allow for widespread deployment of vehicles — a major win for Tesla and Musk, who have long sought to release a fleet of autonomous robotics. Musk is a notable Trump ally and campaign major. Donor. He has already been tapped to lead a new government efficiency group — aimed at “eliminating government bureaucracy, cutting redundant regulations, cutting wasteful spending, and restructuring federal agencies.” statement From Trump.
But Cramer suggested that the Trump team’s plans for autonomous vehicles may be easier said than done. He noted that many state and local governments would have to agree to the new rules, adding that the idea that the federal government “can somehow allow self-driving cars everywhere with the stroke of a pen” is “just pure fantasy.” is.”
Still, he continued, that’s why he’s willing to bet on Tesla. Barclays Analysts called the “Elon premium” in a recent note. The CEO’s involvement in Trump’s successful campaign “quickly elevated Musk’s standing as a global power broker,” the analysts wrote, noting that Tesla’s stock, along with its other ventures, has soared. of commerce, such as successful launches at SpaceX. Cramer also emphasized that Tesla stands out from its EV peers because of its tech focus.
“No matter what, though, always remember that Tesla is a tech company,” he said. “Others are automakers, and a tech company can make a profit from an extremely high price without batting an eye.”
Tesla did not immediately respond to a request for comment.
