Tesla’s Big Rally and All Things Musk, Tapestry-Capri Merger Blocked, Apple Downgraded 10/25/24

Carl Quintanilla (0:00)

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 Friday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla. Jim Cramer is back. David Faber here at Post 9 of the New York Stock Exchange. Futures are in the green as yields do stabilize a bit. Dollar index back below 104 We'll get set up for next week where we will get Mag 7 earnings, a jobs number, GDP, Jolts and more. A roadmap, though, begins with Tesla coming off one of the strongest one-day rallies in more than a decade and boosting Elon Musk's position as the world's wealthiest person.

David Faber (0:35)

On the M&A front, here's a Capri Holdings. They are plunging. Tapestry, though, up double digits. A federal judge has blocked Tapestry's purchase of Capri. It would have put luxury brands such as Coach and Michael Kors under one roof. Also ahead, Nvidia is closing in on Apple's title as the world's most valuable company. The iPhone maker got a downgrade this morning.

Carl Quintanilla (0:58)

S&P breaking a three day loss yesterday. Thanks in part to Tesla's massive rally, the best day since 2013 Didn't quite get back to the levels of October 1st, Jim. And of course, today we have this barn burner of a five byline story in the journal.

Jim Cramer (1:13)

Yeah, look, when I look Tesla's leader, I mean, I was on a, you know, obviously on an oil platform yesterday, but it's all anyone can talk about because this was about the self-driving car and how far are they have took vehicle and how hard, how high. They already have numbers that are incredible. You know, David, you interviewed Musk. He did this whole day of self-driving and it didn't seem to resonate. Then he does a conference call and it's like, okay, it's here, it's going to be in California.

David Faber (1:43)

I know what, well, also the fact that he said 20 to 30 percent higher in terms of sales of EVs next year. Next year? Certainly didn't hurt. Because you do have a number of investors who are frustrated in part because they were positioned for the RoboTaxi day. There was no real positive response to that day. And then of course, here we are a couple of weeks later in the stock, absolutely soars some 20 plus percent yesterday.

Jim Cramer (2:09)

Well, I do think that there was a coherent layout of a plan. But he also said, listen, things were happening so fast, we're just much better than we were even a couple months ago. There's no doubt about it, there's a shot at Waymo, that Waymo basically doesn't have the neural network that's necessary. It was a tour de force call. When I finished, I said, he is so far ahead of everyone else. And I didn't feel that way after that day.

Carl Quintanilla (2:34)

So you don't agree with the bears yesterday who said this was about record sales of credits?

Jim Cramer (2:40)

No, not at all. They are greatly mistaken. This is a new story about technology in the car, done at an inexpensive price, that everybody is going to use because it's much better than a regular car. And those who don't like it don't understand that this was the show. It was a brilliant show. The fact that he speaks to a lot of world leaders and is maybe the most powerful...

David Faber (3:06)

There's not a maybe.

Jim Cramer (3:07)

There's not a maybe.

David Faber (3:08)

He's a shadow government. For years I've called him...

Jim Cramer (3:10)

He's a police force within a police force, not unlike Brazil in 1937

David Faber (3:13)

For years I've called him the most consequential business man on the planet. But at this point, Carl, I think you almost have to elevate that because his power that he has, not just from being the world's wealthiest man, I'm going to get into that more in a moment, but what Starlink and SpaceX give him in terms of his importance geopolitically in war zones, for example, and even far beyond that.

Carl Quintanilla (3:37)

Which is why that line in the journal piece that Putin reportedly asked him to limit Starlink's service to Taiwan as a personal favor to President Xi, was a key line in the story. It points to his influence.

Jim Cramer (3:51)

I mean, it does seem.

David Faber (3:53)

Yeah, and Xi could come back though and say, oh really? Les, I remember you're the only person who has 100 percent ownership of your manufacturing here in China, by the way, an incredibly important market for you. Hard to imagine he would actually.