Tesla Surges, Boeing CEO Exclusive, Earnings Deluge: Winners and Losers 4/24/24

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 Wednesday 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. S&P coming off back to back gains, first time in two months.

Dow trying to make it five straight gains for the first time this year, as Hilton, Texan, Boeing, all in the earnings mix. We're gonna begin though with Tesla surging in the pre-market despite this quarterly miss, including its biggest revenue slide in more than a decade due to part, due in part to price cuts and weaker demand. Shares of the EV maker getting a boost from the company's growth strategy. This is Elon Musk outlining his plan on last night's call.

Elon Musk (0:41)

We've updated our future vehicle lineup to accelerate the launch of new models ahead of previously mentioned starter production in the second half of 2025 So we expect it to be more like the early 2025, if not late this year. These new vehicles, including more affordable models, will use aspects of the next generation platform, as well as aspects of our current platforms, and will be able to produce on the same manufacturing lines as our current vehicle lineup.

So it's not contingent on any new factory or massive new production line.

Carl Quintanilla (1:12)

Jim Bespoke says this looks like it will be the best earnings reaction since 2020

Jim Cramer (1:17)

Well, look, you do have some upgrades. You have a very nice Bank of America upgrade, and you have people saying it's a clearing event. Did he pull rabbit out of a hat?

He came out back with a small car, as well as with the terrific app, by the way, in the tech, that is the hailing app. I thought that the key analogy, David, was not the Airbnb average analogy. He did, that's great. It was the elevator.

David Faber (1:43)

Yeah.

Jim Cramer (1:44)

Was that not terrific?

David Faber (1:45)

You're not alone in that, Jim. It's funny, it came up in a couple of conversations I had this morning, and then somebody actually went to Perplexity and tried to figure out how many elevators there are in the world.

I'm not gonna share the number because it sounded way low, because they were like, that's a great analogy. How many elevators are there?

Jim Cramer (2:02)

I mean, tell people, because it was such a great analogy, about how it started with the elevator.

David Faber (2:05)

Well, you used to have somebody in the elevator, who operated the elevator. Do we ever think about getting in an elevator any longer and having somebody in there pulling the lever for us? Of course not.

Jim Cramer (2:14)

But don't you think that's just, like, he just comes up with a compelling reason why you should buy the stock. Things like that.

David Faber (2:20)

He does. I was listening to the call last night, a couple of other people in my house who were overhearing it, and I was just, I remarked on how he believable he is, sort of uniquely.

And yet, and yet, somebody else piped up, yeah, but should you believe him?

Carl Quintanilla (2:38)

Doug Cass today, extend and pretend.

Bernstein keeps 120 Jim says that growing units this year, in Tony's view, not a slam dunk.

Jim Cramer (2:50)

No, but I mean, you have Adam Jonas talking about an accelerated launch of more affordable models.

Dan Ives likes the lower cost vehicle, but he did lower the price target. Goldman talking about better than the low expectations. I mean, I think that the Baird piece, which is C's turning point on bearish sentiment, this is now trading on sentiment.

And the sentiment was so low, the Jonas stuff was terrific. The sentiment was so low that it was almost like, if you just came in and said, listen, we'll do small car and at the same time, we'll do a ride share app. Well, I mean, look, do you think it's only gonna be up 15? I mean, I think this thing has a possibility of being up 30 because the sentiment changed. Now, David, the free cash flow didn't change. It was bad.

David Faber (3:35)

Oh, and they consumed an enormous amount of capital during the quarter as an automaker will, given how capital intensive the business is. What is it, two and a half billion? What was the number?

Jim Cramer (3:45)

So Carl, I mean, it's a situation where individuals love this stock. I mean, when we talk about what stock people want us to talk about, they want us to talk about Tesla. Well, they've been waiting for this, but what are they waiting for? I mean, now the app is cool. Like you summon it.