CNBC’s Jim Cramer is known for his hot takes, but his latest comments pouring cold water on Morgan Stanley’s Tesla report raises eyebrows (Morgan Stanley Upgrades Tesla Stock Rating, Sees $500B Potential from Dojo Supercomputer).
“The story that really has me stunned is the one from Morgan Stanley’s Adam Jonas,” Cramer said. “I like Adam Jonas but he missed the entire run in TSLA that came from being a car company.” There’s Full video.
Fighting words for longtime Tesla bull Jonas, who published a note this week forecasting the company’s in-development Dojo supercomputer could “challenge NVIDIA down the road.” Tesla stock popped 10% on Monday thanks to the report.
But Cramer isn’t buying the hype. At least not yet.
“Maybe [Jonas is] just getting ahead of the next leg higher as a supercomputer company. One that could possibly challenge NVIDIA down the road? That’s why $TSLA stock went up 10% today. I’m not convinced of it.”
It’s true Tesla has a knack for vertical integration, building key components like chips and batteries in-house while competitors rely on outside suppliers. And Tesla’s data advantage in autonomous driving is unmatched thanks to its massive fleet.
But does that make Tesla the next Nvidia? Or just a fast-moving automaker dabbling in Silicon Valley’s neighborhood?
Cramer argues the latter, saying “Nvidia essentially sells premium picks and shovels, whereas Tesla actually has the gold mine and figured out a way to mine it at low cost.”
Fair point. But never underestimate Tesla’s ability to shock the world and quickly scale transformative technology. Did anyone predict 10 years ago we’d be talking about Tesla AI Day and Dojo supercomputer prototypes today?
As usual, Elon Musk is thinking farther ahead than the rest of us. But in the end, only time will tell if Tesla’s computer vision lives up to the hype. For now, even optimistic analysts like Jonas face skeptics who need more convincing.