Jim Cramer is Talking About These 12 Stocks

8.  Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 85

During the episode of Mad Money, Cramer acknowledged that he left out Tesla, Inc. (NASDAQ:TSLA) for a “good reason”. Referencing his “own it, don’t trade it” philosophy, he said:

“Tesla, eh. It’s a car company so it’s genuinely sensitive to the bond market. No, thank you. They actually have an interest rate concern now that we don’t think about them as a robot company.”

Tesla (NASDAQ:TSLA), renowned for its electric vehicles, is currently facing a difficult landscape in the automotive sector. Recent shifts in consumer preferences show a growing inclination towards more affordable gas-powered vehicles, a trend influenced by economic factors such as higher interest rates. The company released its third-quarter 2024 report on October 23, which illustrated both positive developments and ongoing challenges.

The report indicated an 8% rise in total revenue, reaching nearly $25.2 billion, with significant contributions from the energy generation and storage divisions. However, the company also experienced tightening margins due to competitive pressures and external cost challenges. In terms of vehicle performance, the company achieved an increase in deliveries of the Model 3 and Model Y. Additionally, production of the Cybertruck improved sequentially, marking its first quarter of profitability.

Despite these achievements, Tesla (NASDAQ:TSLA) confronts various hurdles. Automotive gross margins are strained by aggressive pricing strategies and escalating input costs. Furthermore, regulatory investigations into the safety of its Full Self-Driving (FSD) software add another layer of concern. The company recognizes the shift in consumer sentiment and capital cost factors, shaped by broader economic conditions.