Jim Cramer shared his first take on the market Tuesday morning and it centered around Robinhood traders and Tesla Inc TSLA.
Cramer On Tesla: Cramer was asked his thoughts on Tesla, which hit new highs on Monday and was trading higher Tuesday morning.
“I’m a big Tesla fan," Cramer said. "I’ve liked for a very long time."
Cramer is waiting for the sellers to come in. He said shareholders of Tesla don’t care about revenue or earnings per share; They care about the story.
Cramer said the company has future catalysts that could keep people from selling the stock with China sales, the German factory taking off and news on the Cybertruck: “It’s a technology company, not an auto company.”
Cramer said if Tesla was just an automotive company, it would be harder to justify the valuation.
Cramer On Robinhood Traders: Cramer said the speculative part of the market is insane and can’t continue forever.
“Everything they buy goes higher,” Cramer said.
He noted this type of trading is usually met with a big sell-off. Cramer said he hasn’t seen anything like this in a long time and noted it isn’t 1999 now.
“I don’t get where the demand comes from," he said.
TSLA Price Action: Shares of Tesla are up 5% to $547 in pre-market trading.
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