Jim Cramer Says ‘Tesla Has Peaked,’ Elon Musk-Led Company Is Forfeiting Share To Ford
2 min read
Everyone seems to be askingwhyTeslaInc TSLA shares arestuck in a downtrend. Jim Cramer has answers.
What Happened:Cramer believestheprolonged skidin Tesla stock isn'tbecause CEO Elon Muskisjuggling too many businesses following his Twitter takeover.
"How about the factthat Tesla is beginning to lose share,"Cramer saidWednesday morning on CNBC's "Squawk On The Street."
Teslassuccess in the electric vehiclemarket has essentially forced traditional automakers to ramp up offerings intheboomingEV industry. As a result,Tesla's market share in the U.S. in 2022 is around 65%, down about 5%compared to the prior year, according to an Electrek report.
Meanwhile,Ford Motor Co's F share of the EV market has jumped from 1.88% to 5.5%, Cramer said, adding there are other automakers who are seeing increased market share year-over-year.
"I think Tesla has peaked in terms of its share inEV in this country. We gotta start talking about that," Cramer said.
"I'm saying it's something to watch. Particularly because [of] Ford's goals."
Cramer told CNBC, Fordaims to "substantially" increase production of its F-150 Lightning. The Detroit-based automakercan't make enough to keep up with demand, he added.
As Tesla continues to slash vehicle prices in China, Ford is raising prices on the F-150 Lightning. Just last week, Ford announced a new round of price increases for itsflagship electric truck.
Check This Out:As Tesla Extends Discounts To Europe, Rival Ford Hikes F-150 Lightning Prices For 3rd Time Since Launch
Ford can't keep up with demand, Cramer said: "In part, because the grid is so bad in this country that people are buying the F-150 in order to be able to make it so if thegrid goes down, they can light their houses up."
A fully-charged F-150 Lightning with anextended-range battery pack is supposed to be able topower anentirehousefor up tothree days, according to Ford.
"People are just talking about Tesla, Twitter. How about Ford," Cramer said.
F Price Action: Ford is down approximately 43% since the start of the year.
Ford shares are up 2.14% at $11.72 Wednesday afternoon, according toBenzinga Pro.
Photos: courtesy of Tesla & Ford.
