Jim Cramer says to hold Tesla stock even after CyberCab debut flops

After balked at Wall Street TeslaWith its highly anticipated Robotaxi unveiling, CNBC's Jim Cramer told investors not to make a move on the stock. Although he said he wouldn't recommend buying Tesla after Thursday night's event flopped, Cramer discouraged shorting the stock, saying it was “dangerous to bet” against CEO Elon Musk.

“While Tesla's Robotaxi event was fantastic, we didn't get enough detail to justify treating this company like an autonomous driving business rather than an electric vehicle maker,” he said. “So, for now, I suggest taking a page from Switzerland and sticking with it.”

Tesla needs a win on Thursday, Cramer said. The stock suffered earlier this year as the company posted a series of weak quarters. But the shares gained traction in the spring as Musk teased self-driving cars, something that could set Tesla apart from other electric vehicle makers — all of whom likely face stiff competition from Chinese companies.

Impressed by the look and concept of the robotaxi, Kramer said the event's showcase lacked substance and failed to prove its technological prowess. Kasturi gave few details about the actual cost of the car, he added, and gave an “insufficient”. Answer when asked about rollout timing.

By Friday's close, Tesla's stock was down 8.78%, and Cramer said the market's reaction spoke for itself. While Tesla plunged, shares elevator And Uber Later, the rally hit a new all-time high. “Existential Threat” Robotaxis have weighed on rideshare companies, but Wall Street doesn't seem confident that Tesla's CyberCab will be viable anytime soon, he added.

“Look, Tesla has a big problem: The electric car market has turned out to be much smaller than it thought,” Cramer said. “If they want to pivot to self-driving cars, they really need to flesh it out, and we didn't get much in the way of specifics last night.”