Tesla Motors Inc (TSLA) Could Be Destroyed By BMW In Future: Jim Cramer


In a program on CNBC, Jim Cramer and David Faber discussed the news about the latest partnership between Tesla Motors Inc (NASDAQ:TSLA) and BMW. Elon Musk, Tesla Motors Inc (NASDAQ:TSLA)’s CEO has said that his company is in talks with BMW to partner regarding batteries and light weight parts. These parts will also include carbon fiber parts which are used in both Tesla Motors Inc (NASDAQ:TSLA) and BMW cars. Faber said that this partnership, if materialized, is a good news for the automobile industry and it is also very cost efficient.

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Jim Cramer didn’t seem happy with Tesla Motors Inc (NASDAQ:TSLA). He said that BMW was expected to take steps to destroy Tesla. The electric car maker is on the decline. The number cuts, no matter how vehemently rejected by Elon Musk, depicts the problems in Tesla Motors Inc (NASDAQ:TSLA) sales. These cuts, Cramer thinks, are red indicators for the stock and make investors walk away. He said that many people were saying in the past that BMW’s electric cars are the future cars but now, after this latest partnership, it can be said that BMW is not the future leader.

Experts said that gas prices are also a key factor behind the changing number in car sales in the US market. BMW and Tesla Motors Inc (NASDAQ:TSLA) deal is not at a very large scale; it is regarding some parts and batteries, but it can lead to further research and manufacturing endeavors. Tesla Motors Inc (NASDAQ:TSLA) makes Model S Sedan whereas BMW has i3 an i8 sports car under its belt.

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