Tesla Downgraded By Morgan Stanley, Musk-Zuckerberg Cage Match Challenge 6/22/23

SPEAKER_1 (0:00)

Okay, text from the wedding planner. She's talking about a cake pop mural.

Jim Cramer (0:05)

Ah, exciting.

SPEAKER_1 (0:07)

Ooh, it's $8,000. Oh, I don't know, we're trying to save for a house.

SPEAKER_3 (0:12)

Well, you only get married once, or twice.

Carl Quintanilla (0:15)

The three time stops.

SPEAKER_3 (0:16)

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Carl Quintanilla (0:31)

Market moving insight and analysis. Join Jim Cramer, David Faber and me, Carl Quintanilla on the opening bell hour of CNBC Squawk on the Street.

Good Thursday morning, welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, David Faber at post nine of the New York Stock Exchange. Stocks are on track for a fourth consecutive decline. Chair Powell back on the hill, Modi at the White House, and a banner day for central bank rate hikes.

BOE goes 50, so does Norway, got hikes from Turkey and Switzerland as well. A roadmap begins with Tesla though. Morgan Stanley's Adam Jonas, downgrading the stock to equal weight, but he does lift his target to 250

David Faber (1:06)

Central banks also remain in focus. Fed Chair Powell returns to Capitol Hill after those hawker's comments yesterday, and the Bank of England hiking rates today by 50 basis points.

And that home builder rally, well, it continues. Dr. Horton, Pulte trading in the Pulte trip. No, you're saying I'm not saying... Can't be, can't be, can't be, can't be, can't be.

Jim Cramer (1:26)

The margins weren't that good.

David Faber (1:27)

Ignore everything I just said, but we will bring you...

Jim Cramer (1:30)

No, I didn't mean the country.

David Faber (1:31)

Right up to date on what is going on with those home builders. Carl.

Carl Quintanilla (1:35)

Let's get to Tesla this morning. As we said, Morgan Stanley downgrades the stock to equal weight from overweight. Says, quote, we see Tesla as an AI beneficiary and an auto company. High expectations on the former though has brought the stock to a fair valuation.

Jim, Bull 450, Bear 90 gives him some leeway.

Jim Cramer (1:55)

Yes, it does. Well, I think I thought the most salient line in this was Tesla means a must-own.

If it's a must-own for EV. David, if something's a must-own, why would you downgrade it?

David Faber (2:05)

I don't know.

Jim Cramer (2:08)

Well, you're gonna leave me hanging like that?

David Faber (2:10)

That's it. That's all I got for you. I don't know.

Jim Cramer (2:12)

I ain't got nothing for you, Jeff Probst.

David Faber (2:14)

I mean, listen, you, I feel like sometimes you sit here and say, you own it, don't trade it, but then you'll also say things that indicate, well, maybe you wouldn't want to own it right here if you hadn't already owned it.

Jim Cramer (2:25)

Don't personalize. This is about Jonas.

Now, let's say-

David Faber (2:29)

So that's what I mean. Maybe he feels the same way you do on those days when you talk about Apple.

Jim Cramer (2:32)

We're on air.

David Faber (2:33)

It's not a great day to own Apple or buy Apple, but if you own it, don't sell it.

Jim Cramer (2:38)

There you go. That's because there are moments where you shouldn't just run in.

David Faber (2:41)

So what are you asking me the question for? You knew the answer.

Jim Cramer (2:44)

When we come back from commercial, I'm gonna let you have it. All right, so Carl, here's the problem.

Jonas has become, other than Dan Ives, the most colorful analyst of this era, and he makes calls that are so sensitively candid. How about this line? I have to be upfront with you all. While the team is defending the Tesla overweight rating, I did not see this 111% year-date rally. I think it's a self-effacing nature, where he actually says, look, I screwed up, I missed it, I didn't know. Like quantum scape. He's just legendary for being honest. What about the other guys?

How about all the other guys who are wrong and they've never ever said, I have to be upfront with you. Now, this is, maybe it is just one gigantic psychiatric session where he comes in.

Carl Quintanilla (3:32)

Well, it also comes a day after Barclays did the exact same thing.

Jim Cramer (3:36)

Unbelievable.

Carl Quintanilla (3:36)

Cuts to equal weight. They go from 220 to 260 in their case.

Basically a difference of five bucks either way, or 10 bucks.