Market Overview

Musk Is 'Dead Right,' Says Cramer On Tesla Reopening California Factory

Share:
Musk Is 'Dead Right,' Says Cramer On Tesla Reopening California Factory

Jim Cramer, appearing on CNBC’s “Squawk on the Street” on Tuesday, said he agrees with Tesla Inc.’s (NASDAQ: TSLA) CEO Elon Musk’s decision to reopen the Fremont Factory, closed on county health orders.

What Happened

Reacting to Musk’s decision to reopen the factory, Cramer said, “I think he’s dead right.” On Musk’s opinion of the stay-at-home orders, he said, “I think he is a zealot. I think he is correct in thinking that the whole thrust of this country is to put people to work. Why do we presume that he can’t do it in a fashion that’s safe?”

Touching on the risks involved in reopening the factory, Cramer commented, “Why do we think this man [Musk] necessarily is gonna put people at risk?” “There is no indication he is willing to sacrifice people’s lives.”

Cramer asked, “Do we not want this factory open? Secretary Munchin wants this factory open.”

On Monday, Treasury Secretary Steven Mnuchin said on the same program, “I agree with Elon Musk. He is one of the biggest employers and manufacturers in California, and California should prioritize whatever they need to do to solve those health issues so that he can open quickly and safely.”

Why It Matters

Tweeting Tuesday, President Donald Trump came out in open support of Tesla, “California should let Tesla & @elonmusk open the plant, NOW. It can be done Fast & Safely!” to which the Tesla chief executive replied, “Thank You.”

Support for Musk has come from other quarters as well. Musk’s threats to leave California are not “empty,” according to Recode’s Kara Swisher. Social Capital CEO Chamath Palihapitiya said that the Tesla CEO’s intent is not to disregard local laws, but rather he was “actually trying to get time with the folks in Alameda.”

Musk reopened his factory in violation of local laws, but he is ready to face the consequences, including arrest. 

Price Action

Tesla shares traded 1.73% lower at $795.40 in the after-hours session on Tuesday. The shares had closed the regular session 0.23% lower at $809.41.

 

Related Articles (TSLA)

View Comments and Join the Discussion!

Posted-In: Covid-19 Cramer Elon MuskGovernment News Legal Tech Media Best of Benzinga