Musk’s Surprise Visit to China, Paramount Deal Talks, Busiest Week of Earnings 4/29/24

Jim Cramer (0:00)

It's Jim Cramer here. You're listening to the opening bell of CNBC's Squawk on the Street. Don't miss a minute of the action.

Carl Quintanilla (0:07)

Good Monday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, David Faber at Post 9 of the New York Stock Exchange. Coming off the best week for the S&P in about six months, and futures are solid ahead of a very busy few days. Apple and Amazon earnings, a Fed decision, a jobs number, 10 year 463 A roadmap begins with Musk's surprise visit to China.

Tesla passing some key hurdles in that country, giving that stock a big surge in the pre-market.

David Faber (0:31)

Plus, we will have the latest on those deal talks around Paramount as well. The potential departure of the company's CEO as it also gets ready to report after the bell.

Speaking of earnings, it is the busiest week of quarterly results. Nearly one third of the S&P, 520% of the Dow, are reporting. Apple and Amazon, of course, lead the way this week.

Carl Quintanilla (0:53)

Let's begin with Tesla rallying in the pre-market today, following Musk's visit to China. The company winning approval to roll out its full self-driving technology in that country. Jim, this is a partnership with Baidu, being called a watershed moment for FSD.

Jim Cramer (1:07)

Yeah, I mean, you need to have something. I remember when I rode on a Waymope, which is obviously Google's product. You had to have the Google Map. You just need this infrastructure in order to be able to make it. It was obviously being withheld.

Is it worth 20 points? Well, I think the people who are short Tesla betting that there had to be more, let's say, more earnings problems. I mean, there's an Evercore piece out here saying lowering price target to $145 from $155. That probably was pre-China. But David, there is a sense among the companies that make self-driving that there's this holy grail robotaxi plan out there.

Forgetting the fact, I think in this case, the Teslas are expensive, more expensive than the regular car.

David Faber (1:53)

A regular car? The Chinese. Oh, well, yeah. I mean, at the same time that you're reading about and hearing about Musk's visit and the OK for moving full self-driving, at least into the Chinese market, you're also well aware that BYD continues to be able to lower the price of its entry model to well below half of what Tesla charges for a car in the Chinese market.

Not to mention what that will mean in other markets outside the US in terms of continued competition from those EV makers in China, who, as we pointed out so many times, have lowered price and increased quality. Doesn't necessarily mean that they are the equivalent of a Tesla, but the price differential is pretty significant. So he's still dealing with that. But what you're reminded of here, though, guys, is that you thought it was safe to short Tesla finally.

Jim Cramer (2:43)

Well, that's what I was going to say. But I just feel like you I would never even admit to people shorting Tesla because it is just take.

It's a win-win trade. It is.

David Faber (2:52)

You would have thought that, except that, of course, you would have been up. I mean, you were down 40 percent only a week ago and before the earnings print.

Jim Cramer (2:59)

Look, did he know he was going to go to China and get this? I mean, Carl, I think that the bulls are saying that he's back in most favored nation status. I will come back and say that's absolutely true.

But why would you buy this instead of a BYD? Now, David says the quality may be more status symbol, but if it's a RoboTuxi, who cares?

I mean, it's about utility. It's not about how good it looks. Do we care how good... I mean, you take an Uber. I mean, yes, some people want to take a black car, but for the most part, you take what you can get.

Carl Quintanilla (3:30)

Do you think China has the potential to be the tip of the spear around the world on full self-driving?

Jim Cramer (3:35)

No, because it's just...

I think self-drive, as David often mentions, if someone dies in a self-drive, it's considered to be a story. If someone dies in a crash, it's not a story.

David Faber (3:48)

Yeah, it's a strange comparison we continue to make here. There's stories today about Ford self-drive. I mean, you know, the service transportation board and the investigations that they'll do, and yet tens of thousands of people still die every year behind the wheel.