It was an incredible interview. I loved Cramer’s confession of continued animosity, he’s just brutal. Elon is not a Cramer fan and the feeling is mutual. But he likes Tesla’s stock. It really builds a case for “Cramer is not an Elon Fan Boy”. – Examining (what would happen if Elon was bored and left) was particularly insightful. You made a great pitch for the management that more or less brought Elon back to Earth and brought predictability to the business. Inclusion SP500 .. Cramer torpedoed this as a Nuthing burger and tipped well it could leave a wake for people looking to buy. Stock Split .. great that you didn’t stress this, recognized day traders .. lightly and focused on long term investors. Accessories! for congratulations to your Bull case “Thesis” .. that was a great presentation.
I keep watching this video over and over again.
It’s stuff full of very good, very in-depth conversation .. and proves genuine. I don’t doubt you had any talking points, but Cramer was able to roam free and momentarily “lift” Rob for a microsecond every now and then… it was very real. These guys are really playing the opposite investor types .. the idealistic young investor / and the realistic older investor who most often says .. “Show me the numbers”.
Cramer brought his Honeywell, IBM, and Univac experiences, his day at college with Steve Balmer, and the difficulty in branding Tesla as no ordinary stock. These resonated so well with me. He’s been around… he’s an unusual elderly person who can test his assumptions… even after being insulted in public… casually saying… “Okay, that’s something special”.
I “loved” Cramer challenging Rob with the proposal… what if Elon didn’t present what the market wants to hear on Drum Day… something “based on business… a plan for bigger profits”… and get loses in the Nerdy weeds explaining and excited about esoteric “tech” … so true. Elon is a Nerd… he’s an expert… he doesn’t relate well to people who are just looking for profit.
Rob seemed “taken back” like .. What?
His recovery, however, was in gold.
Just look at “How much they could grow…” that’s the setup… his look at everything Elon doesn’t talk about… it’s everything else. The potential is 50% growth per year for a decade with no end in sight. There are no competitors in their class. Every other electric vehicle maker makes $ 100,000 cars in one and two. Elon makes $ 40,000 worth of cars and delivers half a million cars a year. It’s like Rob can’t see that the others can’t see what’s right in front of them.
Cramer has both sides… the old investor and the young investor… and the people on Twitter who “want” the world to work the way they want it to. I think I’m a Cramer fan now.
Cramer seemed to pity the short sellers who keep changing goal posts in the hope of victory. He said they should cash in at a higher price.
The criticism of the interview with Rob Baron that Cramer took… and then hit back… “They don’t sell” what other Pump and Dump scheme do you see where they “don’t sell”.
Cramer left open the possibility… the very real possibility… that even Tesla might not be able to withstand another wave of Covid shutdowns… and then now would be a good time to take some profit off the table. But Rob didn’t budget an inch.
My opinion is that in this case… if the macro environment gets so bad for Tesla, they can just slow down building their factories and “the right size” for demand. But the personal value proposition to (any) car or truck buyer will always be favorable (the cheaper car or truck) .. people don’t get Teslas are cheaper when buying .. and during their cheaper than petroleum products) .. cheaper repairs (only two things can go wrong, engine and battery .. no transmission) and repair diagnostics can be done mostly “over the air”. not stuck at a dealership. They also potentially have a longer lifespan than any oil car, and a second life as new production raw materials or robotaxis … or used vehicles in human-driven hail businesses. Oil cars wear out, break down… have thousands of parts that wear out and fail due to design flaws, structural fatigue and parts availability.
I have to say that Rob’s prediction on drums day when Cramer burned out was very good.
Rob predicted that the Maxwell game would be tackled, but the most important thing will be the total production of “Plan to Scale” batteries and by proxy the total number of cars produced per year. It’s Rob trying to think like an old investor, what’s the “business plan…” for growth and profits.
Cramer then parried and went on the attack .. how are they going to increase the range? He called it “how long will the battery last per day …” what people think of as a cell phone battery. I laughed but I managed to give it to him .. it’s a little more intuitive.
Rob resolutely dodged this question.
Rob addressed battery life instead… a little off target. (I think) Rob said solidly “It’s pretty good today” and overall lifespan is where they can improve. But it’s complicated because they try to improve in many other aspects of using batteries for energy.
I think I agree with Rob, “range” or “how long a day” isn’t what people worry about anymore, (Tesla owners don’t worry about that), a once you’ve gotten used to driving a Tesla lineup really turns out to be no problem. Your car is “full” every night at home without going to a gas station or Telsa Supercharger. Tesla superchargers are used once a year for most people on family vacations… that’s not a big deal. Most people don’t drop their Tesla in one day… they have more than enough battery life today.