Why Jim Cramer Says Tesla Stock Is A 'Sleeping Giant'

Tesla Inc TSLA shares are taking off Tuesday despite catching a couple of price target cuts from analysts. Jim Cramer has indicated that Tesla may be "immunized" from negative coverage at current levels. 

"It's a sleeping giant now," Cramer said Tuesday on CNBC's "Squawk On The Street."

What To Know: Analysts are out highlighting the downside potential in Tesla shares as they gear up for what is expected to be a disappointing earnings report next week. 

In response to the analyst notes, Cramer said, "Well, no kidding," adding that's why the once high-flying stock is down more than 40% in just the last three months. 

Check This Out: Tesla Climbs Higher In This Charged Up Trend: Here's What To Watch

Everyone is aware that Tesla has been cutting prices, and the company has the margins to be able to do so, he said. 

"I just don't want to bet against Tesla ... when it's down so much," Cramer said.

By the looks of it, others don't either. Despite the negative sentiment from analysts, Tesla shares are up nearly 7% at the time of writing. According to Benzinga Pro data, just 3.09% of Tesla's float is currently sold short.

"How about the fact that the long knives were out on Tesla and the stock is up," Cramer emphasized: "What does that say?"

See Also: 'Tesla Has More Levers To Pull Than Any OEM,' Says Analyst: Why He Sees 50% Upside For Stock Despite 'Bumpier' Trajectory

Tesla is set to report its fourth-quarter results on Jan. 25. The Elon Musk-led company is expected to earn $1.18 per share on quarterly revenue of $24.96 billion. 

TSLA Price Action: Tesla shares are down more than 60% over a one-year period, but the stock is up about 6% in 2023.

Tesla shares are up 6.86% at $130.78 at time of publication, according to Benzinga Pro.

Photo: Courtesy of Scott Beale on flickr.