Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Benzinga
Benzinga
Business
Adam Eckert

'Tesla Is Just Way Ahead': Why Jim Cramer Says UBS Upgrade Of The Elon Musk-Led Company Is 'Extraordinary'

Jim Cramer on Thursday applauded a bullish analyst call on Tesla Inc (NASDAQ:TSLA) from UBS, suggesting the electric vehicle manufacturer is years ahead of its competition.

What Happened: UBS analyst Patrick Hummel upgraded Tesla from Neutral to Buy and announced a $1,100 price target, citing increased production at the Gigi Shanghai factory, record backlogs, margin momentum and a structural competitive edge in the supply chain. 

The UBS analyst also raised his outlook for earnings per share over the next three years by up to 40%. 

Why It Matters: Cramer was impressed by the research backing the note and largely agreed with the UBS analyst's take.

"You really want to buy this stock after you read this," Cramer said Thursday on CNBC's "Squawk On The Street."

The UBS analyst suggested that Ford Motor Co (NYSE:F) and General Motors Co (NYSE:GM) don't have what it takes to compete, and Cramer called this "questionable." Once the pair of legacy automakers have more EVs in scaled production, competition should heat up, he said. 

"But yeah, Tesla is just doing better than everybody. It is a little aggravating because everybody else is really trying hard, but Tesla is just way ahead."

See Also: Does Tesla Or Lucid Make The Cooler-Looking Electric Vehicle? Over 60% Say...

He simplified the note by saying the analyst is essentially telling investors to get in before it's too late. 

"Look, everytime they put out a car, it sells and this piece just tells you that the company is more liquid, stronger than everybody with a better supply chain. It's an extraordinary piece. It's really well researched," Cramer said.

"And I think the fact is ... people are in awe of Elon Musk."

TSLA Price Action: Tesla has a 52-week high of $1,243.49 and a 52-week low of $593.50.

The stock was up 3.87% at $753.70 late Thursday morning, according to data from Benzinga Pro.

Photo: courtesy of Tesla.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.