CNBC's Jim Cramer made the case for owning Tesla stock, saying it's worthwhile not because President-elect Donald Trump reportedly wants to relax U.S. self-driving rules, but because of CEO Elon Musk himself.
"While I don't buy the national self-driving mandate, I think nothing truly dulls the case for owning Tesla," he said. "The Musk premium will work its magic in other ways, perhaps favorable municipalities and Tesla rentals next to federal highways."
The electric vehicle stock jumped on Monday, up 5.62% by close, following a Bloomberg report that the Trump transition team wants to make a federal framework for self-driving cars. Such a framework could allow for more widespread deployment of the vehicles — which would be a major victory for Tesla and Musk, who has long sought to release a fleet of autonomous robotaxis. Musk is a notable Trump ally and major campaign donor. He's already been tapped to lead a new government efficiency group — which aims to "dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies," according to a statement from Trump.
But Cramer suggested that the Trump team's plans for autonomous vehicles might be easier said than done. He noted that numerous state and local governments would have to agree to new rules, saying the idea that the federal government "can somehow allow self-driving cars everywhere with the stroke of a pen" is "just plain fanciful."
Still, he continued, he's willing to bet on Tesla because of what Barclays analysts dubbed an "Elon premium" in a recent note. The CEO's involvement in Trump's successful campaign "sharply elevated Musk's standing as a global power broker," the analysts wrote, also pointing out that Tesla's stock has traded in-line with his other ventures, such as a successful launch at SpaceX. Cramer also stressed that Tesla stands apart from its EV peers because of its tech focus.
"No matter what, though, always remember that Tesla's a tech company," he said. "The others are automakers, and a tech company can get an insanely high price-to-earnings multiple with no one blinking so much as an eye about it."
Tesla did not immediately respond to a request for comment.
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