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Tesla’s stock experienced a dramatic decline of nearly 12% on Wednesday, July 24, following a disappointing Q2 earnings report. Despite the setback, CNBC’s Jim Cramer remains optimistic about the electric vehicle giant’s long-term prospects. However, his recent statements have ignited the possibility of the “Inverse Cramer Effect” hitting the TSLA stock. 
<h2 id="jim-cramer-long-on-tesla-stock">Jim Cramer Long On Tesla Stock</h2> 
Amid the earnings turmoil, Jim Cramer took to social media platform X (formerly Twitter) to express his bullish stance on <a href="https://coingape.com/news/stocks/nvidia-stock-soars-as-elon-musk-spotlights-latest-ai-milestone/" target="_blank" rel="noopener">Elon Musk</a>‘s Tesla. Cramer quoted Tesla Energy’s announcement on record storage deployments of 9.4 GWh in Q2. He wrote, “This chart is a major reason why you want to be long Tesla for the long haul. People need to listen to last night’s great call!!” 
Moreover, Cramer also commented on the broader market sell-off and Tesla’s position within it. He noted, “This sell-off has a mind of its own… There was nothing wrong with Google and Tesla has a lot of things going for it no one cares about but will matter years down the road.” Furthermore, he criticized the shift of investment from large-cap tech stocks, like Tesla, to small-cap stocks. He labeled it a “bogus self-fulfilling narrative.” 
While <a href="https://coingape.com/jim-cramer-claims-eth-was-bid-up-before-etf-debut/" target="_blank" rel="noopener">Jim Cramer</a>’s endorsements are well-followed, his bullish comments on Tesla stock come against the backdrop of the so-called “Inverse Cramer Effect.” This term refers to the phenomenon where stocks endorsed by Cramer sometimes perform poorly shortly after his recommendation. Despite this, Cramer’s influence remains significant, particularly among retail investors. 
Cramer’s defense of Tesla highlighted his belief in the company’s long-term fundamentals. In addition, he pointed to Tesla’s advancements in energy storage, like the Powerwall and Megapack, as indicators of future growth. “I wonder if any of the sellers of Google or Tesla actually listened to the conference calls last night because anyone who did knows these companies are doing extremely well,” Cramer remarked. 
Also Read:&nbsp;<a href="https://coingape.com/news/stocks/cathie-woods-ark-sheds-more-tesla-shares-ahead-q2-earnings/" target="_blank" rel="noopener">Cathie Wood’s Ark Invest Sheds More Tesla Shares Ahead Q2 Earnings</a> 
<h2 id="ev-giant-s-q2-earnings-disappointment">EV Giant’s Q2 Earnings Disappointment</h2> 
The EV company’s second-quarter net income fell 45% compared to the same period last year, as global electric vehicle sales struggled despite price cuts and low-interest financing. The Austin, Texas-based company reported a net income of $1.48 billion from April through June, down from $2.7 billion in Q2 2023. This marked Tesla’s second consecutive quarterly decline in net income. 
Nonetheless, revenue for the second quarter rose 2% to $25.5 billion, slightly above Wall Street’s expectations of $24.54 billion. However, the earnings per share (EPS), excluding one-time items, came in at $0.52. This falls short of analysts’ predictions of $0.61. 
The disappointing earnings report triggered a sell-off, causing Tesla stock to drop about 8% in after-hours trading on Tuesday. Furthermore, the <a href="https://coingape.com/crypto-stocks/tsla/" target="_blank" rel="noopener">TSLA stock</a> plummeted 11.62% to $217.75 at the time of writing on Wednesday, July 24. This stock performance hints that the “Inverse Cramer Effect” might be in play. 
The market’s reaction to Tesla’s earnings was swift and severe. Investors were spooked not only by the earnings miss but also by the ongoing challenges in boosting vehicle sales. Just ahead of the earnings report, Cathie Wood’s Ark Invest sold $3.73 million worth of Tesla shares ahead the earnings, signaling a pessimistic sentiment. 
Also Read:&nbsp;<a href="https://coingape.com/bitcoin-miner-marathon-digital-139-million-fine-mara-stock-tanks/" target="_blank" rel="noopener">Marathon Digital Pays $139 Million Fine In Contract Breach, MARA Stock Tanks 2.5%</a> 
The post <a href="https://coingape.com/news/stocks/tesla-stock-crashes-12-but-jim-cramer-remains-bullish-on-ev-giant/">Tesla Stock Crashes 12% But Jim Cramer Remains Bullish On EV Giant</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Tesla Stock Crashes 12% But Jim Cramer Remains Bullish On EV Giant

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