Cramer Flags Tesla Sell-Off Risk After JP Morgan Downgrade
Jim Cramer is highlighting potential downside for Tesla (TSLA) after a widely followed sell rating from JP Morgan. According to Benzinga, Cramer amplified analyst Brian Sozzi’s note by stating, “Bold …Must mean people are going to sell this one to buy SpaceX.” Cramer suggested that the negative report from JP Morgan could trigger a sell-off in Tesla shares, especially as investors look at other Elon Musk companies like SpaceX for possible opportunities.
While the sources mention Tesla’s recent delivery miss and speculation about a SpaceX IPO, Cramer’s key point is that major negative analyst calls from top Wall Street firms can prompt investors to reconsider their Tesla holdings, particularly if a new Musk-linked market debut (like SpaceX) arises.
SpaceX and Tesla: Capital Shifts in Focus
Cramer speculated that some investors may sell Tesla to buy into SpaceX if and when the company goes public: “Must mean people are going to sell this one to buy SpaceX.” This underscores the idea that a major IPO from another Musk enterprise could spark capital rotation away from Tesla, compounding the pressure from bearish analyst sentiment. However, while SpaceX IPO talk creates noise, there has been no official announcement or timeline.
Cramer Willing to 'Bless' The Trade Desk at $22
Switching to The Trade Desk (TTD), Cramer responded to a viewer on his show (as reported by Yahoo Finance): “If you want to take a shot at it at $22, I’m willing to bless that, though. $22 is very low.” He acknowledged that the programmatic ad platform is facing "real competition" from Amazon (AMZN) but suggested that for investors interested in The Trade Desk at that price, it may be worth considering.
Cramer also highlighted ongoing risks for The Trade Desk. He warned the caller, “They do have real competition, and the competition is Amazon... you gotta see a couple of quarters that have something going for it.” The presence of Amazon as a direct competitor in digital advertising makes sustained recovery more challenging for TTD.
What Traders Should Watch
- JP Morgan's Tesla sell rating: Major analyst downgrades at large institutions can have a strong impact; monitor Tesla trading volume and sentiment closely in response.
- SpaceX IPO developments: Any confirmed information regarding a SpaceX public listing could increase the potential for investors shifting capital away from Tesla. Stay alert for official news.
- The Trade Desk at $22: Cramer’s price level sets a focal point for traders considering an entry. Watch for price action and volume around $22.
- Amazon’s ad business: Announcements or results from Amazon's advertising initiatives could have implications for The Trade Desk’s competitive positioning.
Stocks365 Take
Traders should treat these Cramer comments as catalysts, but weigh them against broader market signals. For Tesla (TSLA), a high-profile sell call from JP Morgan and ongoing chatter about a SpaceX IPO mean heightened volatility is possible. Review position sizing and stop-loss strategies if you are exposed to TSLA. For The Trade Desk (TTD), Cramer’s willingness to 'bless' the stock at $22 is notable, but only as a potential level for risk-tolerant entry. The competitive threat from Amazon remains significant, so traders should seek confirmation from technical and fundamental trends before acting on the endorsement.
